UDG reports on a healthy first half
Updated : 09:16
International healthcare services provider UDG reported a first half of “financial and strategic progress” on Thursday, with adjusted revenue growing 2% at constant currencies to €472.4m.
The FTSE 250 firm’s adjusted operating profit in the six months to 31 March improved 9% at constant currencies to €48.4m, and its adjusted profit before tax was up 10% at constant currencies to €41.2m.
Diluted adjusted earnings per share were up 8% at constant currencies to 12.77 euro cents, while total adjusted earnings per share were up 8% to 17.23 euro cents.
UDG’s net debt was up on six months ago at €228m, from €195.8m on 30 September 2015, but down from €274.9m on 31 March 2015.
The company’s net debt-to-EBITDA ratio was 1.63x, compared with 2.02x a year ago and 1.42x six months ago.
"The group's continuing business delivered another period of strong growth during the first half of 2016,” said UDG Healthcare chief executive Brendan McAtamney.
“Profit before tax increased by 18% and earnings per share increased by 15% [before allowing for currency changes] due to a combination of robust underlying growth and the benefit of currency movements.”
McAtamney said Sharp’s operating profit increased by 38% during the period, while Ashfield increased operating profit by 7%.
The continuing group operating margin improved to 10.2% from 9.4%, with each division increasing its operating margin during the period.
McAtamney confirmed the board was reiterating its full-year market guidance of 6%-8% EPS growth for the continuing group on a constant currency basis.
“The group's activities and strategy continue to be supported by the strong growth outlook for the outsourced healthcare services market.
“Following the completion of the disposal of the United Drug Supply Chain businesses and MASTA in April, the group is now in a net cash position,” McAtamney explained.
“Underpinned by our strong balance sheet and diversified client base, UDG Healthcare remains well positioned to continue to execute our international expansion strategy and meet the growing demand for our specialist services from our global healthcare clients."