United Drug reports pre-tax profits up €28.3m

Healthcare services group, United Drug, has reported strong growth for the year ending in September, buoyed by the performance of its pharma wholesaling and medical and scientific divisions. Pre-tax profits grew by 22 per cent to €28.3 million over the year, with turnover increasing by 15 per cent to €1.17 billion.

The results reflect a year of significant development at United Drug, including the acquisition of three companies. When these purchases are stripped out, organic profit growth was 17 per cent. United Drug shareholders are to receive a dividend of 18 cents per share, up 14 per cent on last year.

Company chief executive, Mr Liam FitzGerald said he expected current growth levels to be maintained in coming years. He said the company is hoping to add further acquisitions next year, but predicted that these would be "bolt-on acquisitions as opposed to bet-the-house acquisitions".

United Drughas a gearing ratio of about 22 per cent, leaving it with the necessary debt capacity for expansion.

The company announced yesterday that it was to invest €32 million in completing the development of its Magna Park facility at Citywest in Dublin.

When the disposal of an existing premises at Belgard Road in Dublin is considered, the net investment in the project will be €22 million. Mr FitzGerald said that the "star performer" for 2002 had been the company's medical and scientific division, which incorporated the acquisition of New Splint in the UK and IntraVeno in Ireland in the course of the year.

United Drug announced last night that non-executive director, Mr Paddy Digan, had retired from the board of the company. Mr Digan had been a director for the past five years.