United Group profits up 7 per cent

Pharmaceutical and healthcare services group United Drug has reported a 7 per cent rise in pre-tax profits for the six-months to the end of March 2012.

The company said pre-tax profits totalled €35million compared to €32.5 million for the same period a year earlier.

Operating profits also rose by 7 per cent to €39.5 million as against €37 million while group revenue was unchanged at €894 million.

Earnings per share were up 8 per cent up on the same period in 2011 to €11.80

The board of directors have declared an interim dividend of 2.48 cent per share, up 3 per cent on the 2011 interim dividend.

United Drug said businesses outside of Ireland accounted for over 70 per cent of operating profits during the six-month period under review, with 25 per cent of profits coming from the US.

Net cash flow from operating activities for the period totalled €20.4 million. Net debt at the end of March 2012 was €122.3 million.

The sales, marketing and medical division and the packaging and specialty division performed particularly strongly, with the businesses now contributing more than 70 per cent of profits.

Earnings before interest, tax and amortisation (ebita) in the packaging and speciality section rose by 47 per cent to €7.8 million in the first-half, boosted by a 14 per cent rise in revenues to €78.3 million.

The sales, marketing and medical division grew ebita by 3 per cent to €9.8 million despite a 15 per cent reduction in revenues.

However, United's healthcare supply chain section saw revenues grow by just 0.7 per cent to €730.3 million, while ebita was down by 1.4 per cent to €21.9 million.

The group said that based on the good trading performance for the year to date, adjusted diluted earnings per share for the year to the end of September are expected to be between 4 per cent and 8 per cent ahead of last year.

United added that it expects to deliver another strong cash flow performance in the year.

"With relatively modest debt levels and strong cash flows the group is well positioned to support its future growth objectives both organically and through additional acquisitions," it said.

NCB said the company continues to benefit from contract wins which in turn lead to higher margins.

Davy nudged up its full-year forcast following the latest results, while Goodbody said it expected to see further growth in United's ex-Ireland operations.