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UDG hikes EPS guidance

03 August 2017 07:08

UDG Healthcare increased its guidance for constant currency adjusted diluted earnings per share (EPS) for the year to 30 September 2017 from a range of 15% to 18% previously, to be between 17% and 19% ahead of last year.

In FY16, continuing group EPS was $31.8c (Euro: 28.6c) and the hiked EPS was based on the group's recent acquisitions of Vynamic and Cambridge BioMarketing.

UDG said its trading performance for the quarter to 30 June 2017 was good with revenue and adjusted profit before tax ahead of the same quarter last year. Ashfield

Ashfield was ahead of the same quarter last year, with growth across both the Commercial & Clinical and Communications parts of the business. Trading benefited from the October 2016 acquisition of STEM which continued to perform well during the quarter.

In July 2017, the group announced the acquisitions of Vynamic, a US-based healthcare consultancy firm and Cambridge BioMarketing, a US-based healthcare communications business, in addition to receiving competition authority approval for the acquisition of Sellxpert, a German contract sales outsourcing business.

Sharp

Sharp traded in line with the same quarter last year.

US legislation requires the mandatory serialisation of prescription medicines from November 2017.

In June 2017, the US Food and Drug Administration (FDA) announced a one year delay in enforcement of those requirements until November 2018 to provide additional time to comply and avoid supply disruptions.

Sharp continues to actively engage with its clients to ensure that they are ready for the new deadline, however, the enforcement delay slowed the pace of take up of its serialisation services.

As previously announced in April 2017, Sharp acquired a pharmaceutical packaging facility in Bethlehem, Pennsylvania, from Daiichi Sankyo to provide additional capacity across both commercial and clinical trial packaging. Over the next 18 months Sharp's US clinical business will relocate to this larger, state-of-the-art facility to offer clients an integrated clinical development, packaging and distribution service, located in one facility.

Sharp Europe continued to improve during the quarter driven by increased activity levels from new and existing clients.

Aquilant

Aquilant's underlying operating profit was ahead of the same quarter last year.

Nine months to 30 June 2017

Group revenue and adjusted profit before tax for the nine months to 30 June 2017 are in line with expectations and well ahead of the prior year.

Growth was driven by a combination of underlying growth and the benefit of acquisitions, moderated by a foreign exchange headwind on the translation of non-US profits.

Group Outlook & Development

The Group was active from a corporate development perspective since the start of the financial year, committing $200m to the acquisitions of STEM, Sellxpert, Vynamic, Cambridge BioMarketing and a US packaging facility.

The group's strong balance sheet leaves it well positioned to continue executing strategic acquisition opportunities to complement its existing growth platforms and generate good returns.

As part of the group's Future Fit initiatives to invest in scalable infrastructure across HR, Finance and IT to support continued delivery of sustainable future growth, the Group launched its Human Resource Information System, Workday in April 2017.

The implementation of Ashfield's new Oracle finance system has now commenced and is expected to complete in late 2018.

The roll-out of both systems will result in additional operating costs, which will impact the group during the second half of this financial year and subsequent years.

Story provided by StockMarketWire.com

Related Company: UDG

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