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Shares in UDG fall on mixed update

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Shares in healthcare services group UDG fell just over 4pc yesterday after it withdrew its guidance for this year due to uncertainty caused by the coronavirus.

While it has had a "strong" start to the first half of its financial year 2020, with profit before tax for the six months to March 31 "well ahead" of the prior year, UDG expects to be impacted by Covid-19 in the second half of the year, according to a trading update.

It has also suspended its interim dividend.

Analysts at Davy Stockbrokers said it was hard to know where the company's earnings per share will land this year. However, they believe UDG's earnings power "should remain intact once Covid-19 disruption dissipates".

Since the onset of the coronavirus, UDG has experienced some project deferrals and cancellations in its Ashfield business. Its Sharp division has been categorised as essential and continues to operate.

Irish Independent