UDG Healthcare profits soar despite revenue slip

UDG saw pre-tax profits soar 784% in the twelve months ended 30 September to $74.3m, even as revenues dipped 1% year-on-year to $1.29bn.

Adjusted pre-tax profits increased 8% to $150.3m and adjusted underlying earnings rose 4.39% to $189.7m - both of which were boosted by an improvement in operating margins to 14.2% from 13.1%.

Adjusted and diluted earnings per share shot up to 22.92p each - a marked improvement on the 1.52p recorded a year earlier.

During the year, UDG incurred a pre-tax exceptional charge of $37.9m, which primarily related to two fully-settled legal claims, the closure of Sharp Europe's Oudehaske facility and $12.5m worth of restructuring costs.

Chief executive Brendan McAtamney said: "2019 was another year of strong strategic progress for UDG Healthcare.

"Looking ahead to FY20, we expect to continue to deliver good growth across our businesses, supplemented by further strategic acquisitions utilising our strong balance sheet."

As far as 2020 was concerned, UDG said wider market conditions remained favourable, with the group well-positioned to deliver sustainable growth in line with its medium-term underlying operating profit guidance.

At 1000 GMT, the shares were down 1.3% at 750.50p.