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UDG Healthcare Plc (UDG)

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Thursday 07 August, 2014

UDG Healthcare Plc

Interim Management Statement

RNS Number : 4755O
UDG Healthcare Public Limited Co.
07 August 2014
 



UDG HEALTHCARE PLC

 

INTERIM MANAGEMENT STATEMENT

 

7 August 2014: UDG Healthcare plc ("the Group"), a leading international provider of healthcare services, issues the following Interim Management Statement covering the period from 1 April 2014 to the date of this announcement.

 

Nine months to 30 June 2014

Group revenues and adjusted operating profits1 for the nine months to 30 June 2014 are ahead of the same period last year. Profit growth in the nine months to June has been driven by the strong performance of the Ashfield Commercial and Medical Services division (Ashfield).

 

Quarter to 30 June 2014

Performance for the quarter to 30 June 2014 has been good. Group revenues and profits for the three months are ahead of the same period last year, with Ashfield becoming the largest profit contributing division for the first time.

 

Ashfield Commercial and Medical Services

Ashfield has leading market positions in the provision of contract sales outsourcing, healthcare communications and medical services to pharmaceutical manufacturers in major markets including North America, the UK and continental Europe.

 

Trading during the three months to June has been strong with revenues and profits well ahead of the same period last year. Profit growth was particularly strong within the healthcare communications businesses due to a combination of organic growth and acquisitions. The North American business again performed well and the greenfield Japanese business moved into profitability in the quarter.

 

In March, we acquired the KnowledgePoint360 business strengthening our existing offering in healthcare communications. Its integration is going to plan and the business has performed well since acquisition.

 

In July, we acquired Galliard and Nyxeon which adds scientific public relations to the range of services we offer in healthcare communications. 

 

Supply Chain Services

Supply Chain Services provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. In February 2014, we disposed of the Specials business, which has adversely impacted the profitability of the division. Despite challenging market conditions, trading in the three months to June has been solid, with profits flat on the prior period, despite the sale of the Specials business.

 

The impact of generic substitution in the Republic of Ireland has been as expected in the quarter although the adverse impact of "direct to pharmacy" schemes has been higher than anticipated in this market.

 

Sharp Packaging Services

Sharp Packaging Services is a leading international provider of pharmaceutical packaging services with facilities in the US and Europe. Overall trading during the quarter has been strong and profits are well ahead of the prior period.

 

Positive momentum in Sharp US has continued from the second quarter with both revenues and profits well ahead of the prior period. Sharp Europe made a small operating loss in the three months to June. There continues to be a healthy pipeline of new business across both the US and Europe.

 

We continue to add further capacity to our packaging facilities in the US to meet this increasing demand. The first phase of the capacity expansion programme at our Allentown facility in Pennsylvania was completed earlier this year and will provide 10% extra capacity. The Board has recently approved a second phase of expansion to this facility which will add an additional 25% to our US capacity. This project is expected to be phased over a 4-5 year timeframe, with anticipated investment costs of €35m.

 

Investment for future growth

We have continued to make significant investments in our information technology systems. We have also continued to broaden our management depth and expertise across the Group as we expand internationally. In particular, we have enhanced our central information technology, compliance and marketing functions.

 

Outlook

Based on the underlying trading performance we reiterate our previous guidance that we expect constant currency adjusted diluted earnings per share1 for the year to 30 September 2014 to be between 5% and 9% ahead of last year.

 

The Group also expects to deliver a good underlying cashflow performance for the year.

 

1 before the amortisation of acquired intangible assets and non-recurring costs associated with acquisition and divestment activity

 

 

Conference Call

UDG Healthcare plc will host a conference call for investors and analysts at 8.00am (GMT) today, 7 August 2014 to discuss this statement. The dial-in details are as follows:

 

Standard International Access

+44 (0) 20 3003 2666

UK Toll Free

0808 109 0700

Ireland

+353 (0) 1 800 930 488

Password

UDG Healthcare

 

A playback facility will be available for seven days on +44 (0) 20 8196 1998 (UK and International) or + 353 (0) 1 486 4035 (Ireland). The access code for the replay will be 9276511.

 

2014 Reporting Timetable

 

The Group will issue preliminary results for the 12 months to 30 September 2014 on 20 November 2014.

 

Forward Looking Statements

 

This Statement contains certain forward-looking statements. They represent expectations for the Group's business, and involve risks and uncertainties. The Group has based these forward-looking statements on current expectations and projections about future events. The Group believes that expectations and assumptions with respect to these forward-looking statements are reasonable. However, because they involve known and unknown risks, uncertainties and other factors, which in some cases are beyond the Group's control, actual results or performance may differ materially from those expressed or implied by such forward-looking statements.

 

ENDS

 

For reference:

 

Investors and Analysts:

Alan Ralph

CFO

UDG Healthcare plc

Tel: +353-1-463-7706

 

David Marshall

Head of Investor Relations

UDG Healthcare plc

Tel: + 353-1-463-2518

 

 

 

Media:

Greg Lawless / Lisa Kavanagh

Powerscourt

Tel: +44-207-250-1446

 

 

About UDG Healthcare plc:

 

Listed on the London Stock Exchange, UDG Healthcare plc is a leading international provider of services to healthcare manufacturers and pharmacies, with operations in 22 countries including the US, UK, Ireland and Germany.

 

UDG Healthcare plc operates across three divisions: Ashfield Commercial and Medical Services, Supply Chain Services and Sharp Packaging Services.

 

Ashfield Commercial and Medical Services is a global leader in the provision of contract sales outsourcing services to pharmaceutical manufacturers with operations in major markets including continental Europe, the UK, North America and a presence in South America and Asia. The division provides sales teams, telesales, nurse educators, medical information, healthcare communications and event management services to healthcare companies in 22 countries. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle.

 

Supply Chain Services includes the United Drug Supply Chain Services and the Aquilant Specialist Healthcare Services businesses. United Drug Supply Chain Services is the largest pharmaceutical wholesaler in the island of Ireland.  It is also the leading pre-wholesaler in Ireland and has achieved the No.1 position in the UK through its joint venture business UniDrug Distribution Group. The division provides logistics services to healthcare companies, pharmacies and hospitals in the UK and Ireland. Aquilant Specialist Healthcare Services is a leading provider of outsourced sales, marketing, distribution and engineering services to the medical and scientific sectors in Ireland and the UK.

 

Sharp Packaging Services is a leading international provider of pharmaceutical contract packaging and clinical trials materials services with facilities in the US, UK, Dutch and Belgian markets.

 

For more information go to: www.udghealthcare.com


This information is provided by RNS
The company news service from the London Stock Exchange
 
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