Wednesday 25 April 2018

UDG Healthcare issues positive trading update

UDG ceo Brendan McAtamney
UDG ceo Brendan McAtamney
Ellie Donnelly

Ellie Donnelly

Dublin-listed UDG Healthcare has issued a positive trading update for the three months to 30 June 2017.

In the brief statement, UDG, a provider of healthcare services, said that its trading performance for the quarter to 30 June 2017 has been good, with revenue and adjusted profit before tax ahead of the same period last year.

"Group revenue and adjusted profit before tax for the nine months to 30 June 2017 are in line with expectations and well ahead of the prior year," the company said.

Read more: UDG targets bigger M&A as profits keep rising

The company’s rapid growth has been driven by a combination of underlying growth and the benefit of acquisitions, moderated by a foreign exchange headwind on the translation of non-US profits.

Last month the company purchased Cambridge BioMarketing, a firm that focuses on orphan and rare disease drug launches, marking UDG's second acquisition in as many weeks and the fifth in its financial year.

In its statement today the company said that its "strong balance sheet" means that it is well positioned to continue executing strategic acquisition opportunities to complement its existing growth platforms and generate good returns, suggesting that it has no signs of slowing down its acquisition spree.

Based on the group’s recent acquisitions of Vynamic and Cambridge BioMarketing, UDG is increasing its guidance for constant currency adjusted diluted earnings per sharefor the year to 30 September 2017, to be between 17pc and 19pc ahead of last year, from a range of 15pc to 18pc previously, the company said.

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