United Drug reports strong trading performance

Drugs distribution and packaging services company United Drug reported strong trading across the group for the three months to the end of June, with revenues and profits ahead of the same quarter last year.

In a trading update, the company said it expected earnings per share for the year, before non-recurring costs associated with acquisition activity and restructuring, to be between 5 per cent and 8 per cent ahead of last year.

The group also announced agreement of a $170 million private placement loan note issue, scheduled to be completed and drawn down in September

Half of the funds raised will be used to repay bank facilities and existing loan note maturities in 2014, it said.

Following its decision to list solely on the London Stock Exchange late last year, the company conducted a review to consider if the group’s results should also be presented in sterling.

However, it has decided that based on existing and futuregeographic profit flows it will continue to use the euro as its reporting currency.

The company recently completed the acquisition of Expansis, a contract sales provider in Spain, for €12 million earlier this month.

Expansis is complementary to our Pharmexx Spain business and subject to acquisition approval from the Spanish competition authorities, it is intended to merge the two businesses.