UDG revenue and profit ‘well ahead’ of last year’s figures

Healthcare services provider UDG said on Thursday that in the nine months to June 30th, group revenue and operating profit were “well ahead” of 2015, as it reaffirmed its full-year guidance and eyes further acquisitions.

In the three months to June 30th, trading was “good” UDG said, with group revenue and adjusted operating profits ahead of the same period last year.

Given that the majority of the group’s operating profits are generated outside of the UK, UDG said it had not yet seen any material impact on underlying trading performance.

Unchanged fundamentals

“The long-term fundamentals of the group’s businesses remain unchanged, and the group remains confident in the future growth prospects of its businesses,” UDG said.

The company said trading across the Ashfield division was "good" during the period. Operating profit was ahead of the same period last year, with growth across both the commercial and healthcare communications parts of the business.

The group's Sharp Packaging Services division reported operational profits "well ahead" of the same period last year, while trading momentum in Sharp US remains positive. Operating profits in Aquilant were slightly behind the same quarter in 2015, UDG said.

For the nine months to June 30th, UDG said group revenue and adjusted operating profit for the continuing business were “well ahead” of the prior year.

Operating profit growth in the nine months to June was driven by the continued strong underlying profit growth in both Sharp and Ashfield, supplemented by the benefit of currency movements.

Reporting in dollars

UDG said that from October 1st the group would start reporting in US dollars, given that “over half of the group’s profits are currently generated in US dollars, the group’s US-based businesses are demonstrating the greatest growth opportunities and future corporate development activity is likely to be US focused”. The move means dividends will also be declared in dollars rather than in euro, with shareholders having the option to receive their dividends in either dollars, euro or sterling.

Looking ahead, UDG reiterated its full-year market guidance of 6-8 per cent adjusted diluted EPS growth for the full financial year. In a net cash position, UDG said it was “well positioned to continue its corporate development activities, which should serve to complement its underlying profit growth”.