Uniphar ends first half in line with expectations

Healthcare services company Uniphar updated the market on its first half on Tuesday, saying it had performed in line with expectations for the six months through June at both a gross profit and EBITDA level.

The AIM-traded firm said that while the Covid-19 trading environment had given rise to “significant” challenges, it also created several opportunities for growth across its three divisions.

Those new opportunities, coupled with overperformance in certain service offerings, resulted in the group delivering overall organic gross profit growth of 5% for the first half.

Uniphar said that during the period, it continued to deliver on its strategic objectives by meeting the needs of speciality manufacturers through the provision of higher value services, and remained committed to ensuring continuity in the supply and distribution of “much needed” medicines, medical devices and related services through its European and global platforms.

The board said the company had maintained a “strong” liquidity position, with a net cash position retained at the period end.

Free cash flow conversion, after Brexit-related timing adjustments, was in line with expectations.

Looking ahead, Uniphar said it was “well-positioned” to deliver gross profit growth for 2020 across all three of its divisions.

The group's medium-term organic growth targets at a divisional level remained unchanged for 2021 and beyond.

“Despite the difficult trading backdrop, we have continued to deliver gross profit growth across all our divisions and strong gross profit organic growth at group level,” said chief executive officer Ger Rabbette.

“Our suite of digital capabilities continues to be a key strength as we navigate through the pandemic and adapt to the ‘new normal’.

“We continue to maintain a strong liquidity position and remain well positioned to achieve our strategic objective of doubling EBITDA within 5 years of initial public offering.”