UDG Healthcare reports 'good' start to the year
UDG Healthcare expects adjusted diluted earnings per share for the year to 30 September 2018 to be between 18pc to 21pc ahead of last year’s earnings per share of $37.1c, after it reported a “good” start to its financial year.
In a trading update today, the company said that its profit before tax for the three months to 31 December was "well ahead" of the same quarter last year.
UDG’s performance was aided by recent acquisitions, the company said.
Operating profit at the Ashfield arm of the company was significantly ahead of the same quarter last year, driven by underlying growth and the benefit of acquisitions completed in financial year 2017.
As the company had expected, profit at its Sharp unit was down year-on-year, in part due to hurricane damage in Puerto Rico, which disrupted manufacturing schedules at a number of the company’s clients.
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However UDG said that it expects the performance of Sharp to improve during the second half of 2018.
Meanwhile the company’s Aquilant arm reported operating profit in line with the same quarter last year.
The company said that it expects the reduction in US corporation tax to have a beneficial impact on it, with the group’s effective group tax rate for the financial year 2018 expected to be 4pc lower than previously anticipated, at approximately 19pc.
Last September the company announced that it had made its sixth acquisition of the financial year, after agreeing to pay up to $75.8m (€63m) for US-based healthcare business MicroMass Communications.
UDG has completed a string of acquisitions in the United States in recent years.