Trading Statement

UDG HEALTHCARE PLC

FIRST QUARTER TRADING UPDATE

Strong Start to the Year and Full Year Guidance Issued

2 February 2016: UDG Healthcare plc ("the Group"), a leading international provider of healthcare services, issues the following trading update covering the period from 1 October to 31 December 2015. The company will hold its Annual General Meeting in Dublin at 12.00pm today.

Quarter to 31 December 2015

Group

The Group has made a strong start to the financial year with trading for the quarter to 31 December 2015 well ahead of the prior year.

Ashfield Commercial & Medical Services

Trading across the Ashfield division has again been strong, resulting in operating profit for the division being ahead of the same period last year.

Operating profit growth was particularly positive within the US and European commercial businesses, whilst the UK commercial business demonstrated a lower growth profile in its more mature market. The healthcare communications business has again delivered good profit growth in the period. 

Sharp Packaging Services

The positive trading momentum in the Sharp US business has continued during the first quarter with operating profits significantly ahead of the prior year. Progress in Sharp Europe continues to be incremental as we re-align the business for future profitability.

The capacity expansion programme at our Allentown facility in Pennsylvania remains on target to open in April 2016, with the first phase of packaging suites becoming operational in the second half of 2016.

Aquilant

Operating profits in Aquilant were slightly ahead of the same quarter last year.

Disposal Update

The disposal of the United Drug Supply Chain and MASTA businesses was approved by shareholders on 13 October 2015. The actual timing of disposal remains subject to competition authority clearance which we continue to expect by June 2016.

United Drug has traded satisfactorily during the quarter.

CEO Transition

Further to our CEO transition announcement on 18 September 2015, the Group announces that the handover has been brought forward and that Liam FitzGerald will now step down as CEO at the AGM to be held later today and Brendan McAtamney will take over as CEO. Mr FitzGerald will continue as a non-executive director as planned until September 2016 and will continue to support the transition of CEO responsibilities and our strategic development efforts on a consulting basis.

Outlook

Based on the underlying trading performance to date, we expect constant currency adjusted diluted earnings per share (EPS)1 for the continuing Group2 for the year to 30 September 2016 to be between 6% and 8% ahead of last year's continuing Group EPS of 27.4c.

The Group currently reports in euro and its profits benefit from any strengthening of the US dollar and pound sterling exchange rates as over 90% of the continuing Group's profits are now in these currencies. The average FY15 exchange rates were €1 = £0.74 and $1.15.

The Group also reiterates its dividend guidance for FY16, whereby we expect to continue our long history of dividend growth. As a result, the dividend per share for FY16 should increase over the FY15 dividend of 11c per share.

The Group expects to deliver a good underlying cashflow performance for the year. Modest debt levels and the net proceeds from the United Drug disposal leave the Group in a strong position to support its ongoing growth and expansion, both organically and through acquisition.

1 Before the amortisation of acquired intangible assets, exceptional items and non-recurring costs associated with acquisition and divestment activity.

2 All Group businesses excluding the United Drug Supply Chain and MASTA businesses whose disposal was announced on 18 September 2015.

Conference Call: 

UDG Healthcare plc will host a conference call for investors and analysts at 9.00am (GMT) today, 2 February 2016 to discuss this statement. The dial-in details are as follows:

Standard International Access: +44 (0) 20 3003 2666

UK Toll Free 0808 109 0700

Ireland +353 (0) 1 436 0959

Password UDG Healthcare

A playback facility will be available for seven days on +44 (0) 20 8196 1998 (UK or International) or + 353 (0) 1 486 4035 (Ireland). The access code for the replay will be 8829124.

Date for Interim Results:

The Group will issue interim results for the six months to 31 March 2016 on Thursday 19 May, 2016.

Forward Looking Statements

This Statement has been prepared by UDG Healthcare plc and contains certain forward-looking statements, beliefs or opinions, including statements with respect to the Company's business, financial condition and results of operations. These statements are made by the Company in good faith based on the information available to it at the date of this Statement and reflect the beliefs and expectations of the directors. By their nature these statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.

No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this Statement speak only as of their respective dates, reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations and growth strategy. Subject to the requirements of the Financial Conduct Authority, the London Stock Exchange, the Listing Rules and the Disclosure and Transparency Rules (and/or any regulatory requirements) or applicable law, the Company explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this Statement that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this Statement.

For reference:

Investors and Analysts:

Alan Ralph Keith Byrne

CFO Head of Investor Relations

UDG Healthcare plc UDG Healthcare plc

Tel: +353-1-463-2300 Tel: + 353-1-463-7722

Media:

Lisa Kavanagh / Nick Dibden / Jack Hickey

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 20 countries including the US, UK, Ireland and Germany.

UDG Healthcare plc operates across three divisions: Ashfield Commercial & Medical Services, Sharp Packaging Services and Supply Chain Services.

Ashfield Commercial & Medical Services is a global leader in the provision of sales, marketing and healthcare communications services to pharmaceutical manufacturers with operations in major developed markets. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle. The division provides sales teams, healthcare communications, telesales, nurse educators, medical information, pharmacovigilance, regulatory and event management services to healthcare companies in 19 countries.

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

Supply Chain Services includes the United Drug Supply Chain Services and the Aquilant Specialist Healthcare Services businesses. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. United Drug Supply Chain Services is the largest pharmaceutical wholesaler and pre-wholesaler on the island of 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.

On September 18, 2015 the Group announced the proposed sale of United Drug Supply Chain and MASTA (part of the Ashfield Division) to McKesson Corporation. The United Drug Supply Chain businesses to be disposed of do not include the Aquilant Business. The disposal was approved by shareholders at an EGM on 13 October 2015. The timing of the disposal remains subject to competition authority clearance which we continue to expect by June 2016.

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