UDG Healthcare's Q3 profits come in 'well ahead' of same period in 2018

Healthcare services provider UDG saw third-quarter pre-tax profits come in "well ahead" of the same period a year earlier, reflecting underlying growth and the benefit of acquisitions.

For the nine months ended 30 June, the group's constant currency pre-tax profit was also up year-on-year, leading UDG to reiterate its full-year guidance for constant currency adjusted diluted earnings per share growth of 5%-7% ahead of 2018's EPS of USD 45.9 cents.

On an operational basis, UDG said Ashfield's operating profit was "significantly ahead" of the same quarter last year.

Ashfield's communications and advisory unit "performed strongly" during the quarter, while its commercial and clinical wing traded in line with expectations, although operating profits were down year-on-year.

Over at Sharp, revenues increased on the back of increased demand for its packaging of serialised biotech and speciality products services.

However, UDG said operating profits had declined in the quarter as additional resource inputs associated with the accelerated demand ramp up in the US commercial business negatively impacted margins.

"For the full year, Sharp is expected to deliver double-digit revenue growth and mid-single-digit underlying operating profit growth. With additional resources now in place and given the strength of its pipeline, Sharp is well-positioned to return to normalised operating profit growth in FY20," said UDG.

As of 0835 BST, UDG shares had dipped 0.20% to 750.50p.