United Drug, the healthcare products group, continues to record strong growth, with a 27 per cent increase in pre-tax profit to €18.6 million (£14.65 million) in the year to September 30th, 2000 from €14.6 million. Building on the strong set of results in the first half, "the second half of the year saw a further acceleration in our rate of growth", United Drug said.
The group is actively seeking acquisition targets in Britain and continental Europe, according to chief executive Mr Liam Fitzgerald. Talks are taking place with a number of companies and the US is also being considered. United Drug saw significant growth in each of its key markets in the past year, it said. "We achieved market share gains, a strong performance from our UK contract distribution joint venture, UniDrug, and benefited from a first-time contribution from our investment in the contract sales outsourcing sector." These, the company added, ensured it "made impressive progress in 2000, both financially and in terms of strategic direction".
The group is looking for further strong growth. It is in a good financial position to continue moving ahead. Net debt at €20.1 million gives a low gearing of 22 per cent and interest is covered 13 times by profits. Its strategy is to continue a policy of reproducing good organic growth "supported by strategically sound acquisitions" in complementary areas. Sales grew by 19 per cent from €730.0 million to €870.3 million and profit margins widened. Reflecting real growth, earnings per share rose by 27 per cent from 44.10 cents to 56.00 cents. Shareholders are to benefit with 15 per cent increase in the final dividend to 12.92 cents, making a total of 18.25 cents, a 15 per cent increase over 1999.
Reviewing its activities over the past 12 months, the group said its pharmaceutical wholesale division continued the strong growth trend established over the past number of years. United Drug Wholesale increased its market share. In Northern Ireland, Sangers had sales and profit increases ahead of budget.
United Drug Distributors had a "very satisfactory" profit performance. UniDrug had an "outstanding year", Pemberton Marketing and Blackhall Pharmaceuticals reported "good growth" in sales and profits, while the Medical & Science business unit "continues to be market leader in selected areas".
