9th May 2007 07:01
United Drug PLC09 May 2007 Announcement of the interim results for the six months ended 31 March 2007 Highlights 2007 2006 Increase •'000 •'000 % Group revenue 770,141 707,902 9% Adjusted trading profit* 30,621 26,271 17% Adjusted profit before tax** 29,012 24,914 16% Adjusted diluted earnings per share (cent)** 10.73c 9.33c 15% Dividend per share (cent) 1.97c 1.71c 15% * excluding intangible amortisation and including share of joint ventures' profit after tax ** excluding intangible amortisation United Drug believes that the adjusted trading profit, adjusted profit beforetax and adjusted diluted earnings per share are more appropriate measures of theunderlying group performance. Chairman's statement The half year to 31 March 2007 was a period of sustained progress and furthergrowth for United Drug with profits before tax, excluding intangibleamortisation, of €29.0 million being achieved, an increase of 16% over the sameperiod last year. The increase in revenue from €707.9 million to €770.1 millionunderpins these headline figures. Overview We have made important progress in implementing our strategy of developingUnited Drug into a broad-based healthcare services group. During the half year,we acquired Pyramed, a UK-based distributor of medical devices, which will beintegrated into our Medical & Scientific division. In addition, we have recentlyannounced the acquisition of the pharmaceutical packaging division of BudelpackInternational, based in Belgium. This is our first venture into continentalEurope and together with our UK packaging business will provide a platform tofurther develop the service that we now offer to pharma companies wishing tooutsource their packaging activities. In 2006, we acquired MASTA, a leading service provider in the travel healthfield specialising in the sale and distribution of vaccines in the UK market,and Endoscopy, a high quality distributor specialising in the sales andtechnical support of endoscopy equipment. Both of these acquisitions haveperformed ahead of our expectations, and are an important part of our strategyaimed at developing and acquiring specialised healthcare services that can addvalue to our existing divisions. The new agreement on drug prices in the Republic of Ireland took effect on 1March 2007. This transition has been well managed by our Wholesale division andas expected volume growth slowed in the run up to the price reduction butreturned to more normal levels in March. This division, which includes ourNorthern Ireland wholesale business, showed strong growth when measured againstthe same period last year. Our Supply Chain Services, Medical & Scientific, andContract Sales Outsourcing divisions all performed well in competitive markets. Interim Dividend The Board of Directors has declared an interim dividend of 1.97 cent per share.This is an increase of 15% over the 2006 interim dividend. We remain committedto a progressive dividend policy. The Directors are pleased to advise that all shareholders will be given theopportunity of receiving all or part of the 2007 interim dividend as a scripdividend in the form of new ordinary shares. It is expected that the sharealternative election/mandate forms, setting out details of the share alternativeoffer and the procedures to be followed will be posted to shareholders on 31 May2007. The interim dividend will be paid or alternatively, share certificates issued,on 13 July 2007 to holders of ordinary shares whose names appear on theCompany's register at the close of business on 18 May 2007. Outlook United Drug remains positive about the fundamental dynamics driving the demandfor goods and services in the healthcare markets in which we operate and wecontinue to see opportunities to grow both organically and by acquisition.Against this background, your Board looks forward to the completion of anothersuccessful year. Ronnie KellsChairman 9 May 2007 Chief Executive's review The six months to 31 March 2007 has seen United Drug continue to grow and evolveas an international healthcare services company. Our continued development ofthe Irish-based businesses has been enhanced in recent years by expansion of anumber of services into the UK market. The geographical expansion of the Groupcontinued just after the end of this reporting period with the announcement, inApril, of the acquisition of the pharmaceutical packaging division of BudelpackInternational, based in Hamont, Northern Belgium. Each of our four business divisions - Pharma Wholesale, Supply Chain Services,Medical & Scientific and Contract Sales Outsourcing, has traded successfullyduring the six-month period. During this time, we have seen the implementationof a new agreement on drug prices in the Republic of Ireland market. The newpricing agreement was announced during 2006 and came into effect on 1 March2007. The transition to the new pricing agreement has been very well managed byour Pharma Wholesale business. In the Supply Chain Services division, MASTA, the vaccine business we acquiredin 2006, has integrated well and performed particularly strongly. MASTA willcontinue to broaden this division's presence in higher margin activitiessurrounding the core distribution offering. Our Medical & Scientific divisionhas continued to develop its presence in the UK market and this has been aidedby the performance of the Endoscopy UK business acquired last year and therecent acquisition of Pyramed. In Contract Sales Outsourcing, we have continuedto develop our market-leading positions in both the UK and Irish markets. These developments have helped to deliver further record results for the periodand a continuation of our long established track record of double-digit profitand earnings growth. Group revenue for the period is €770.1 million, an increaseof 9% over 2006, and pre-tax profits, before amortisation charges increased by16% to €29.0 million. Fully diluted earnings per share, also beforeamortisation, have increased by 15% to 10.73 cent and the interim divideddeclared is also ahead by 15% at 1.97 cent per share. Pharma Wholesale United Drug continues to be committed to providing a top-quality, efficient andcustomer-focused service to all of our independent pharmacy customers. In the Republic of Ireland, United Drug Wholesale has again increased revenueand profitability during the period, in what continues to be a competitivemarketplace. We focus on enabling our customers to grow their business through the provisionof a full range of support services. During the period, we have had particularsuccess in increasing our offering within niche areas such as the sourcing andsupply of 'named-patient' medicines, ostomy products and via our Profitlinesover the counter product range. These services supplement our core serviceoffering which is a top-quality, customer-focused wholesale service at acompetitive cost. In the retail pharmacy market, United Drug's dynamic owner-managed independentcustomers continue to outperform the corporate-owned pharmacies of our wholesalecompetitors. As a result, we have again been able to further increaseour market share in the Irish market. The Irish population continues to expand rapidly and when combined with theageing and longevity of the population, underpins the continued volume growth inthe Irish pharmaceutical market. On 1 March 2007, the price of many 'off-patent'medicines was reduced as a result of the Irish Government's review of drugprices. As anticipated, volume growth slowed in the run-up to the pricereduction but has returned to more normal levels in March. The transition to thenew pricing agreement was well managed, resulting in minimal impact on oursuppliers and customers. United Drug Wholesale has again reduced its key expenses-to-sales ratio byachieving better utilisation from our facilities in Ballina, Dublin andLimerick. Our policy of continually investing in our infrastructure has enabledus to deliver a better service at lower cost to our customers. We have furtherreduced our costs and improved our service through the sharing of best practiceacross our facilities throughout the island of Ireland. In Northern Ireland, Sangers has again increased its revenue and profits duringthe period. As a well-established local supplier, Sangers is best placed toreact to the ever-evolving requirements of our pharmacy customers in NorthernIreland. During the period Alliance Boots appointed Sangers as sole distributorof all Pfizer prescription medicines within Northern Ireland, as part ofPfizer's new 'Direct to Pharmacy' distribution model. This new distributionmodel commenced on 5 March 2007, and has been operated very effectively by theSangers management team. Overall, the Pharma Wholesale division has had another very successful sixmonths where revenue, profits and market share have again increasedsignificantly. As the market leader and most efficient operator in both markets,United Drug is well positioned to continue to develop its business in this area. Supply Chain Services The Supply Chain Services (SCS) division focuses on delivering value enhancingsupply chain solutions to the healthcare-manufacturer whilst, at the same time,maintaining a strong end-customer focus. The Division, which incorporatesbusinesses operating across the Irish and UK markets, performed well during theperiod. Growth was achieved in the Irish-based businesses by supporting thestrong business profile of key clients, adding new clients and by expanding ourrange of services. In particular, the Health Services Executive (HSE) awardedthe contract for the national supply of all vaccines to United DrugDistributors. This consolidated our position as a leading provider of cold-chainsolutions in the speciality distribution market. We have also achieved furtherimprovements in operational efficiencies as the businesses derive the benefitsof being in a state-of-the-art facility at Magna Park. In the UK, MASTA, the business we acquired in July 2006, reported an excellentperformance during the period. MASTA is involved in the full supply chain forflu and travel vaccines, from procurement through to marketing, selling anddistribution. This company is also the largest private provider of travelvaccines to the general public through both owned and franchised clinics. Thisbusiness is uniquely positioned in the specialist distribution market andpresents exciting opportunities. TD Packaging is our contract packaging business in the UK. The businesscontinues to perform strongly, winning new business by consistently deliveringflexible, cost-efficient and high-quality solutions to its broad customer base.Our commitment to this service area was recently re-affirmed by our announcementon 11 April of the acquisition of a contract packaging business, Budelpack,Belgium. A base in continental Europe will further enhance our ability tocapitalise on the growing contract packing outsourcing market. UniDrug Distribution Group (UDG), our joint venture with Alliance Boots,performed strongly in the period. UDG has a blue chip client list and itcontinues to win new clients through customising services around specific supplychain needs. New business wins in the period include Intersurgical, SHS, AlkAbello, B. Braun and Teva. UDG is now benefiting from investing heavily intechnology and infrastructure to be able to capitalise on a broad range ofopportunities. Judicious investment in acquisitions, infrastructure, technology and, mostimportantly, the right people has enabled the SCS division to offer a broadsuite of services to both existing and prospective clients. Medical & Scientific The Medical & Scientific (M&S) division of United Drug continues to grow anddevelop in both the UK and Irish markets. The Irish businesses of Unitech (serving the hospital laboratory and scientificsectors) and Intraveno and Intrapharma (medical equipment and pharmacyproducts), operating as a consolidated unit from the Magna Park facility, havedelivered another set of strong results for the half year. Intraveno has consolidated its position as the leading supplier of infusionsystems to the hospital sector securing a number of key orders, while Ireland'sfirst da Vinci surgical robot was purchased for a new hospital development.Unitech has also enjoyed significant equipment sales in the period, especiallywith Tecan products and the iStat range of point of care diagnostic instruments.The core laboratory business, focused around the Sysmex range of analysers,expanded its market share through successful placements in both the Republic ofIreland and Northern Ireland. The Division's strong reputation in the clinical diagnostics area was enhancedthrough Unitech's appointment by Thermo Shandon as their exclusive distributorin Ireland, further building on a long and successful partnership between thetwo companies. The successes in the equipment sector during the period have been matched bystrong growth across the consumables businesses, particularly in the supply ofmedical consumables such as Intersurgical's range of respiratory therapyproducts to acute hospitals. In Northern Ireland, Primacare delivered a strong performance in the supply ofconsumables to the community and nursing home sector. In February 2007, our UK surgical presence was enhanced with the acquisition ofPyramed. This company sells high-tech products to the interventional cardiologysector in the UK and is particularly well placed with a strong portfolio ofproducts. The acquisition of Pyramed continues our strategy of identifying andacquiring companies operating in niche clinical areas, which bring a goodportfolio of products underpinned by a strong technical and clinical supportethos. Pyramed has contributed well to the UK business in the two months oftrading to date. Endoscopy UK, our endoscopy company, is approaching the end of a successfulearn-out year and has also made a significant contribution to the UK business inthe period. We will continue to focus on ways of further increasing the synergybetween Endoscopy and our other medical and surgical businesses in both the UKand Ireland. The established UK businesses of New Splint, Mantis Surgical and Presearch,operating out of the shared facility at our Basingstoke headquarters, have alsodelivered a good performance in a competitive environment. New Splint hasenjoyed significant success with its launch of the Mega System C, an 'on thetable' orthopaedic revision surgery system. After this six-month trading period, the M&S division is in a very strongposition and looking forward to another successful financial year. Contract Sales Outsourcing The In2Focus acquisition, now well integrated with our Ashfield business, hasenabled us to establish a clear leadership position in the UK contract salesmarket. The objective of the Contract Sales Outsourcing (CSO) division is to broaden itsrevenue streams both geographically and by diversification into selectivecomplementary service offerings. Many companies are currently assessing theimpact and significance of the restructuring of Pfizer's sales force in the UK.This has, however, in some cases, had a positive impact on the CSO marketplace,as more companies are now embracing the idea of sales force flexibility. BothAshfield and In2Focus are already pursuing these opportunities with clients andare leading the way in some of the more innovative sales models in operation.Within the market, Ashfield and In2Focus have not only retained a highproportion of business from last year but have added new clients such as MSD,Grunenthal, Rochester Medical, Fresenius, Roche, UCL, Solvay and Pierre Fabre,and have also expanded a number of their existing teams. Ashfield Intermediate Healthcare, the new pilot division of Ashfield, which isfocused on providing clinical services to the NHS, is advancing proposals tosupply community-based services in disease areas such as Chronic ObstructivePulmonary Disease (COPD), Deep Vein Thrombosis (DVT) and rheumatology. There isalso an increased level of interest from the pharma industry for these types ofservices. A small consultancy contract has been secured with Schering Plough fora project around service redesign in the biologics infusion arena. The efforts to broaden our service offering through high value-added solutionssuch as our Sales Force Effectiveness consulting (SFE) continue to besuccessful. SFE has seen great success with major wins and new customers addedincluding Roche, Wyeth, Schering Plough, Sanofi Aventis Ireland, AstraZeneca,Daiich-Sankyo and Schering Health Care Ltd. The most significant event of theSFE calendar was the AstraZeneca programme in Japan where 1,400 Japaneserepresentatives were assessed across 19 Japanese cities utilising Japanesedoctors and assessors. The programme was a major success and will hopefully openup further opportunities. Ashfield Ireland has continued to grow over the first six months of thefinancial year. It has successfully retained a high percentage of contractsmoving into 2007 including key syndicated clients such as AstraZeneca andBoehringer Ingelheim. New contracts have been secured for both dedicated salesand nursing teams with new and existing clients. Additional business has alsobeen won with Teva, Gerard, Schering Plough, Amgen, Beiersdorf, Eli Lilly andCrawford. The small Ashfield US business is well positioned to deliver growth in what is alarge and somewhat under-developed contract sales marketplace. This year, it haswon a new sales contract team with Pam Labs with a team of 21 specialtyrepresentatives selling to psychiatrists. What is more encouraging however isits offering of two new services to the US market. The new SFE programme hasbeen well received by US pharmaceutical and device companies, and in the firstsix months has run 21 events across the United States. Additionally, a new nurseadviser service has been started with Novartis, a pilot project of threeclinical nurse educators delivering physicians office education to the nurseswithin selected offices in Florida and Washington State. Conclusion The first six months of the 2007 financial year has seen the continuedbroadening of our service offering, particularly into higher margin activities,as we develop as an international healthcare services company and another periodof double-digit profit and earnings growth. At the end of the period, we arewell positioned to continue this growth for the remainder of the current yearand the years ahead. I would like to take the opportunity to thank our employeesand staff for their contribution to a strong six-month performance. Liam FitzGeraldChief Executive 9 May 2007 Group income statement for the six months ended 31 March 2007 Six months Six months ended ended 31 March 2007 31 March 2006 (Unaudited) (Unaudited) Notes •'000 •'000 Continuing operations Group revenue 2 770,141 707,902 Cost of sales (660,540) (608,254) Gross profit 109,601 99,648 Distribution expenses (80,583) (76,264) Administration expenses (2,875) (1,998) Other operating expenses (2,021) (739) Other operating income 3,162 3,959 Operating profit 27,284 24,606 Finance income 762 544 Finance expense (2,371) (1,901) Share of joint ventures' profit aftertax 3 1,316 926 ------- ----- Profit before tax 26,991 24,175 Income tax expense (4,601) (4,075) Profit for the period attributable toequity holders of the Company 22,390 20,100 ====== ====== Earnings per share Basic 4 9.92c 9.10c Diluted 4 9.85c 9.00c Group statement of recognised income and expense for the six months ended 31 March 2007 Six months Six months ended ended 31 March 2007 31 March 2006 (Unaudited) (Unaudited) Notes •'000 •'000 Items of income/(expense) recogniseddirectly within equity: Foreign currency translation effects 7 (1,133) (3,013) Group cash flow hedges: - Effective portion of cash flow hedges (net) 7 993 353 - Deferred tax liability on cash flow hedges 7 (125) (44) Group defined benefit pension schemes: - Actuarial gain 7 2,885 847 - Movement in deferred tax 7 (653) (171) ------- ------- Net income/(expense) recogniseddirectly within equity 1,967 (2,028) Profit for the period 22,390 20,100 -------- -------Total recognised income and expensefor the period attributable to equity holders of the Company 24,357 18,072 ====== ======= Group balance sheetas at 31 March 2007 As at As at As at 31 March 2007 31 March 2006 30 September 2006 (Unaudited) (Unaudited) (Audited) Notes •'000 •'000 •'000ASSETS Non-current Property, plant andequipment 54,649 57,528 56,658 Goodwill 124,864 90,468 123,018 Intangible assets 24,901 9,285 15,661 Investment in jointventures 20,203 9,644 18,955 Deferred tax assets 40 2,062 722 ----- ----- ----- Total non-currentassets 224,657 168,987 215,014 Current Inventories 143,341 132,274 154,668 Trade and otherreceivables 274,559 241,087 262,785 Cash and cashequivalents 59,262 73,882 45,912 -------- -------- --------Total current assets 477,162 447,243 463,365 --------- --------- ---------Total assets 701,819 616,230 678,379 ======= ======= ======= EQUITY Called-up share capital 7 11,712 11,483 11,563 Share premium 7 99,799 90,916 94,439 Other reserves 7 (3,544) (7,404) (3,770) Retained earnings 7 199,480 162,335 181,005 Total equity 307,447 257,330 283,237 ------- ------- ------- LIABILITIES Non-current Interest-bearing loansand borrowings 5 77,548 85,062 81,683 Other payables 10,208 8,113 5,535 Provisions 1,362 2,193 1,453 Employee benefits 9,986 11,516 12,930 Derivative financialinstruments 4,624 3,848 3,684 Deferred taxliabilitites 6,201 4,072 3,479 Total non-currentliabilities 109,929 114,804 108,764 -------- -------- -------- Current Bank overdrafts 5 - 109 2,764 Interest-bearing loansand borrowings 5 1,062 1,119 1,056 Trade and otherpayables 269,128 232,985 272,924 Current tax liabilities 7,890 9,683 4,811 Provisions 230 200 360 Derivative financialinstruments 6,133 - 4,463 ------- --- -------Total currentliabilities 284,443 244,096 286,378 --------- --------- ---------Total liabilities 394,372 358,900 395,142 --------- --------- ---------Total equity andliabilities 701,819 616,230 678,379 ======= ======= ======= Group cash flow statement for the six months ended 31 March 2007 Six months Six months ended ended 31 March 2007 31 March 2006 (Unaudited) (Unaudited) •'000 •'000Cash flows from operating activities Profit before tax 26,991 24,175 Share of joint ventures' profit aftertax (1,316) (926) Finance income (762) (544) Finance expense 2,371 1,901 ------- -------Group operating profit 27,284 24,606 Depreciation charge 3,715 3,720 Profit on disposal of property, plantand equipment (333) - Amortisation of intangible assets 2,021 739 Share-based payment expense 491 432 Charge in respect of share entitlementscheme 30 19 Decrease in inventories 12,636 3,097 (Increase)/decrease in trade and otherrecievables (8,063) 244 Decrease in trade and other payables (1,884) (6,836) --------- ---------Cash generated from operations 35,897 26,021 -------- -------- Interest paid (2,276) (1,677) Income taxes paid (1,386) (2,810) --------- ---------Net cash inflow from operatingactivities 32,235 21,534 -------- -------- Cash flows from investing activitiesProceeds from disposal of property, plantand equipment 493 20,212 Interest received 762 544 Purchase of property, plant andequipment (1,862) (3,627) Acquisition of subsidiaries (13,107) - ---------- ---Net cash (outflow)/inflow frominvesting activities (13,714) 17,129 ---------- -------- Cash flows from financing activities Proceeds from issue of shares(including share premium thereon, netof scrip dividend) 5,509 3,411 Repayment of interest-bearing loans andborrowings (1,579) (309) Repayment of finance lease liabilities (28) (111) Dividends paid to equity holders of theCompany (6,177) (5,313) --------- ---------Net cash outflow from financingactivities (2,275) (2,322) --------- ---------Net increase in cash and cashequivalents, including bank overdrafts 16,246 36,341 Currency translation adjustment (132) (600) Cash and cash equivalents, includingbank overdrafts at beginning of period 43,148 38,032 -------- --------Cash and cash equivalents at end ofperiod 59,262 73,773 -------- -------- Notes to the interim accounts for the six months ended 31 March 2007 1. Basis of preparation The interim report of the Group has been prepared in accordance with theaccounting policies detailed in the Group's annual report for the year ended 30September 2006, which was prepared in accordance with International FinancialReporting Standards (IFRS) as adopted by the EU. 2. Segmental analysis Business segmentanalysis Six months Six months ended ended 31 March 2007 31 March 2006 Revenue Net result* Revenue Net result* •'000 •'000 •'000 •'000 Pharma Wholesale 473,991 11,745 437,774 10,670 Supply Chain Services 347,400 7,590 320,050 6,112 Medical & Scientific 48,210 6,742 40,716 5,239 Contract Sales 50,260 4,544 46,104 4,250Outsourcing Intercompany (149,720) - (136,742) -eliminations ----------- --- ----------- --- 770,141 30,621 707,902 26,271 ======= ======= ======= ======= * Net result represents profit before financing costs, intangible amortisation and includes share of joint ventures' profit after tax. 3. Share of joint ventures' profit Six months Six months ended ended 31 March 2007 31 March 2006 •'000 •'000Group share of revenue 256,361 211,355 Group share of expenses, inclusive oftax 255,045 210,429 --------- ---------Group share of profit after tax 1,316 926 ====== ===== 4. Earnings per ordinary share Six months Six months ended ended 31 March 2007 31 March 2006 •'000 •'000 Profit for the period 22,390 20,100 Adjustment for intangibleamortisation 2,021 739 ------- ----Earnings adjusted forintangible amortisation 24,411 20,839 ====== ====== Number of Number of shares sharesWeighted average number ofshares 225,678,877 220,892,674 Number of dilutive sharesunder option 1,736,868 2,348,213 ----------- ----------Weighted average number ofshares, including shareoptions 227,415,745 223,240,887 =========== ===========Basic earnings per share -cent 9.92 9.10 Diluted earnings per share- cent 9.85 9.00 Adjusted basic earningsper share - cent* 10.82 9.43 Adjusted diluted earningsper share - cent* 10.73 9.33 * excluding intangible amortisation The adjusted figures for earnings per share are intended to demonstrate theresults of the Group after eliminating the impact of amortisation of intangibleassets and are deemed by management to be the key metric of monitoring groupperformance. The 7,623,066 (2006: 7,623,066) treasury shares held by the Group do not rankfor dividend and have therefore been excluded from the weighted average numberof shares in issue used in the calculation of earnings per share. Notes to the interim accounts (continued) for the six months ended 31 March 2007 5. Interest-bearing loans and borrowings As at As at As at 31 March 2007 31 March 2006 30 September 2006 •'000 •'000 •'000Non-current Bank borrowings 3,283 4,330 3,815 Guaranteed senior loannotes 74,265 80,430 77,868 Finance lease liabilities - 302 - --- --- --- 77,548 85,062 81,683 ======= ======= ======= Current Bank overdrafts - 109 2,764 Bank borrowings 1,047 981 1,013 Finance lease liabilities 15 138 43 ---- ---- ---- 1,062 1,228 3,820 ====== ====== ====== 6. Analysis of net debt As at As at As at 31 March 2007 31 March 2006 30 September 2006 •'000 •'000 •'000Cash and cash equivalents,including bank overdrafts 59,262 73,773 43,148 Non-current interest-bearingloans and borrowings (77,548) (85,062) (81,683) Current interest-bearing loans (1,062) (1,119) (1,056)and borrowings Loan notes payable onacquisitions (4,865) - (3,960) --------- --- ---------Total before derivatives (24,213) (12,408) (43,551) Derivatives (10,757) (3,848) (8,147) ---------- --------- --------- (34,970) (16,256) (51,698) ======= ======= ======= 7. Equity Other reserves Called-up Share premium Cash flow hedge Share based Foreign Treasury shares Retained Total share capital payment exchange earnings equity •'000 •'000 •'000 •'000 •'000 •'000 •'000 •'000At 30September 11,563 94,439 (1,119) 1,861 1,521 (6,033) 181,005 283,2372006 Proceedsfromnew shares 149 9,572 - - - - - 9,721issued Scrip issue - (4,212) - - - - 4,212 - Effectiveportion ofcash flowhedges - - 993 - - - - 993 Deferredtaxliabilityon - - (125) - - - - (125)cash flowhedges Expenses inrespect ofshare - - - 491 - - - 491options Foreigncurrencytranslationeffects - - - - (1,133) - - (1,133) Profit forthe - - - - - - 22,390 22,390period Dividendsto - - - - - - (10,389) (10,389)equityholders Transfer inrespect ofshareentitlementscheme - - - - - - 30 30 Actuarialgainon groupdefinedbenefitpension - - - - - - 2,885 2,885schemes Deferredtaxmovement ongroupdefinedbenefit - - - - - - (653) (653)pension --- --- --- --- --- --- ------- -------schemes At 31 March2007 11,712 99,799 (251) 2,352 388 (6,033) 199,480 307,447 ====== ====== ====== ====== ====== ====== ======= ======= 8. Dividends The Board has declared an interim dividend of 1.97 cent per share. In accordancewith IFRS, this dividend is not provided for in the balance sheet at 31 March2007 but will be recorded when paid. During the first half of the financialyear, the final dividend for 2006, of 4.64 cent per share, was paid giving riseto a reduction in shareholders' funds of €10,389,423. ENDS. Wednesday, 9th May 2007 For reference: Liam FitzGeraldPauline McAlesterUnited Drug plcMurray ConsultantsTel: +353-1-4598877 Tel: +353-1-4980300 Investors and AnalystsMark Kenny/Jonathan NeilanK Capital SourceTel: +353-1-6315500 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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