Healthcare services provider UDG Healthcare reported a 10 per cent boost to revenues on Tuesday for full-year 2015, as the company said it was “very positive” about long-term growth prospects.
In the year ended September 30th, revenues at UDG, which provides pharma groups with outsourced services, grew by 10 per cent to €2.3 billion, or by 4 per cent on a constant currency basis. Operating profit rose by 17 per cent to €120.3 million, while pre-tax profit was up by 24 per cent to €107.1 million.
Chief executive Liam FitzGerald, who is to step down from the role in March, said that the year was one of “ substantial financial and strategic progress”.
“The group delivered strong underlying growth and benefited from currency movements, resulting in profit before tax increasing by 24 per cent and EPS up 21 per cent on the prior year. Group operating margins of 5.2 per cent continued to expand and exceeded our strategic target of 5 per cent for the first time,” he said.
Looking ahead, Mr Fitzgerald said the group remains “very positive about our long-term growth prospects”.
In September, UDG said it would sell its legacy Irish distribution businesses to McKesson for € 407.5m, with a view to accelerating the group's "strategic transformation" to focus on higher growth and higher margin areas. Proceeds from the sale will support the group's international expansion strategy. The deal is awaiting competition authority approval which is now expected by June 2016.
The group's Ashfield Commercial & Medical services division reported strong growth in 2015, with revenue up 21 per cent to € 599.4 million and operating profit up 38 per cent to € 59.9 million. The business benefitted from acquisitions and favourable currency movements in the year.
UK revenues increased 20 per cent to €273.3 million and profits increased 59 per cent, while North American revenues were 32 per cent ahead and operating profits 11 per cent ahead, with the business benefiting from favourable currency movements. In Europe, revenues increased by 8 per cent to €137.1 million.
Sharp Packaging Services recorded a very strong performance in 2015 with revenues up by 37 per cent to € 244.1 million and profits up 55 per cent to € 29.6 million, on the back of favourable currency movements.
US revenues were 40 per cent ahead of the prior year, while Sharp Europe reported revenue growth of 27 per cent, although the division made an operating loss of €0.3 million.
Total revenues in supply chain services rose by 2 per cent to €1.5 billion, but operating profit of € 30.8 million was 23 per cent lower, due to the sale of its specials business in 2014, and the sale of its 50 per cent stake in Unidrug in August 2014.
UDG said it would pay a final dividend of 8.10 cent per share, up b 9 per cent on 2014.
