UDG slides on softer sales at Sharp
FTSE 250 listed firm UDG Healthcare saw a softer-than-expected start to the trading year after its second-largest business, Sharp, lowered its guidance for the remainder of its trading year.
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UDG turned in a 4.4% lower revenue at Sharp of $118.6m over the six months leading to 31 March as the group's contract packaging division saw a 1.6% dip in operating profits, impacted by weaker demand for bottling from its US operations.
Sharp, which UDG pointed out would still deliver double-digit growth to its underlying operating profit in the second half but noted its full-year growth would slide to the mid-single digit area, down from its earlier estimates of low double-digit growth.
However, weaknesses at Sharp were somewhat offset by a 26% improvement in revenue from UDG's flagship business, Ashfield, which was boosted as a result of several recent acquisitions.
UDG reiterated its constant currency adjusted EPS growth of 18 to 21% after total revenue rose 17% to $568.7m.
Pre-tax profits jumped 19% to $63.2m.
UDG's chief executive, Brendan McAtamney said, "We remain confident that our strong market positions and the growing trend in the healthcare industry to outsource specialist activities on an international basis, leaves UDG well positioned for growth in FY18 and beyond."
As of 1100 BST, UDG shares had lost 5.48% to 880.50p.