TIDMUDG
RNS Number : 1950G
UDG Healthcare Public Limited Co.
04 August 2016
UDG HEALTHCARE PLC
THIRD QUARTER TRADING UPDATE
Continued Growth and Full Year Guidance Reiterated
4 August 2016:
UDG Healthcare plc ("the Group"), a leading international
provider of healthcare services, issues the following trading
update covering the period from 1 April 2016 to 30 June 2016.
Quarter to 30 June 2016
Trading performance for the quarter to 30 June 2016 has been
good with Group revenues and adjusted operating profits* ahead of
the same period last year.
Ashfield Commercial & Medical Services ("Ashfield")
Trading across the Ashfield division has been good during the
three months to June. Operating profits were ahead of the same
period last year, with growth across both the commercial and
healthcare communications parts of the business.
In April 2016, the Group acquired Pegasus Public Relations
Limited, a UK based healthcare communications company. The business
has performed well since acquisition.
Sharp Packaging Services ("Sharp")
Divisional operating profits during the three months to June
were well ahead of the same period last year.
Trading momentum in Sharp US remains positive. The fit-out of
Sharp's new packaging facility in Allentown, Pennsylvania was
completed in April. Commercial production from biotech packaging
lines, transferred from our existing facilities, began in June. New
business production is expected to commence in early FY17. This
investment has increased Sharp's commercial packaging capacity by
30%.
Aquilant
Operating profits in Aquilant were slightly behind the same
quarter in 2015.
Nine months to 30 June 2016
Group revenues and adjusted operating profits* for the
continuing business for the nine months to 30 June 2016 were well
ahead of the prior year.
Operating profit growth in the nine months to June has been
driven by the continued strong underlying profit growth in both
Sharp and Ashfield, supplemented by the benefit of currency
movements.
Reporting Currency
Following the disposal of the United Drug Supply Chain and MASTA
businesses in April 2016, the geographic profile of the Group's
businesses has changed considerably and the vast majority of the
Group's profits are now generated in currencies other than Euro.
Over half of the Group's profits are currently generated in US
Dollars, the Group's US based businesses are demonstrating the
greatest growth opportunities and future corporate development
activity is likely to be US focused. Consequently, the Board of
Directors ("the Board") has decided that from the start of its next
financial year, 1 October 2016, the Group will present its
financial results in US Dollars.
The Board expects that the change in reporting currency will
provide a clearer understanding of the Group's financial
performance and reduce the impact of currency movements on the
Group's reported results.
The Board intends that from 2017, dividends will be declared in
US Dollar rather than in Euro, with shareholders having the option
to receive their dividends in either US Dollar, Euro or Pound
Sterling. The Company's share capital will remain denominated in
Euro and existing share certificates will remain valid.
To assist investors with this change, the Group intends to
provide historical financial information in early 2017,
incorporating income statements, balance sheets and cash flow
statements, in US Dollars.
Group Outlook & Development
The Group reiterates its full year market guidance of 6-8%
adjusted diluted EPS* growth for the continuing Group on a constant
currency basis for the financial year ending 30(th) September
2016.
The average 2015 financial year exchange rates were EUR1 =
GBP0.74 and $1.15. Based on the average exchange rates for the
first nine months of fiscal year 2016 of EUR1 = GBP0.76 and $1.11
and current exchange rates, it is likely that there will not be a
material foreign exchange translation impact on reported EPS growth
for the full year.
While the ultimate timing and implications of the UK's exit from
the EU remains uncertain following the "Brexit" referendum
decision, the Group has not yet seen any material impact on
underlying trading performance. The majority of the Group's
operating profits are generated outside of the UK. In addition, the
Group's UK businesses mainly operate in market segments which the
Group does not expect will be materially affected by the UK's
decision to leave the EU.
The long term fundamentals of the Group's businesses remain
unchanged, and the Group remains confident in the future growth
prospects of its businesses.
Following the disposal of the United Drug Supply Chain and MASTA
businesses which completed on 1 April 2016, the Group is now in a
net cash position. This leaves the Group well positioned to
continue its corporate development activities, which should serve
to complement its underlying profit growth. The Group expects to
deliver a good underlying cashflow performance for the year and
reiterates its dividend guidance for FY16, whereby it expects to
continue its long history of dividend growth.
* Before the amortisation of acquired intangible assets,
transaction costs and exceptional items
Capital Markets Day
The Group will hold a Capital Markets Day for analysts and
investors on the afternoon of 27 September 2016 at Glaziers Hall,
London. The event will be hosted by CEO Brendan McAtamney with
presentations from the UDG Healthcare executive and divisional
management teams. The event will provide attendees with an overview
of the Group, including an update on strategy and Group
development. Please contact udghealthcare@powerscourt-group.com to
register your attendance.
Date for Preliminary Results
The Group expects to issue preliminary results for the twelve
months to 30 September 2016 on Thursday 24 November 2016. As noted
earlier, these results will be the last set of results which the
Group will present in Euro, with subsequent results (starting with
the interim results for the six months to 31 March 2017) reported
in US Dollars.
Conference Call
UDG Healthcare plc will host a conference call for investors and
analysts at 9.00am (BST) today, 4 August 2016 to discuss this
statement. The dial-in details are as follows:
Standard International Access: +44 (0) 20 3003 2666
UK Toll Free 0808 109 0700
Ireland +353 (0) 1 436 0959
Password UDG Healthcare
A playback facility will be available for seven days on +44 (0)
20 8196 1998. The access code for the replay will be 6580690#.
Forward Looking Statements
This Statement has been prepared by UDG Healthcare plc and
contains certain forward-looking statements, beliefs or opinions,
including statements with respect to the Company's business,
financial condition and results of operations. These statements are
made by the Company in good faith based on the information
available to it at the date of this Statement and reflect the
beliefs and expectations of the directors. By their nature these
statements involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in the
future. A number of factors could cause actual results and
developments to differ materially from those expressed or implied
by the forward-looking statements.
No representation or warranty is made that any of these
statements or forecasts will come to pass or that any forecast
results will be achieved. Forward-looking statements may, and often
do, differ materially from actual results. Any forward-looking
statements in this Statement speak only as of their respective
dates, reflect the Company's current view with respect to future
events and are subject to risks relating to future events and other
risks, uncertainties and assumptions relating to the Company's
operations and growth strategy. Subject to the requirements of the
Financial Conduct Authority, the London Stock Exchange, the Listing
Rules and the Disclosure and Transparency Rules (and/or any
regulatory requirements) or applicable law, the Company explicitly
disclaims any obligation or undertaking publicly to release the
result of any revisions to any forward-looking statements in this
Statement that may occur due to any change in the Company's
expectations or to reflect events or circumstances after the date
of this Statement.
For reference:
Investors and Analysts:
Alan Ralph Keith Byrne
CFO Head of Investor Relations & Strategy
UDG Healthcare plc UDG Healthcare plc
Tel: +353-1-468-9000 Tel: + 353-1-468-9000
Media:
Lisa Kavanagh / Nick Dibden / Jack Hickey
Powerscourt
Tel: +44-207-250-1446
About UDG Healthcare plc:
UDG Healthcare plc (LON: UDG) is a leading international
provider of services to the healthcare industry, employing over
7,000 employees at operations across 19 countries including the US,
UK, Ireland and Germany.
UDG Healthcare plc operates across three divisions: Ashfield
Commercial & Medical Services, Sharp Packaging Services and
Supply Chain Services.
Ashfield Commercial & Medical Services is a global leader in
commercialisation services for the pharmaceutical and healthcare
industry, operating across two broad areas of activity: commercial
and clinical services, and healthcare communications. It focuses on
supporting healthcare professionals and patients at all stages of
the product life cycle. The division provides sales teams,
healthcare communications, telesales, nurse educators, medical
information, pharmacovigilance (drug safety), regulatory and event
management services to over 300 healthcare companies in 18
countries.
Sharp Packaging Services is a global leader in contract
packaging and clinical trial packaging services for the
pharmaceutical and biotechnology industries, operating from state
of the art facilities across the US and Europe. Sharp is also a
world leader in 'Track and Trace' serialisation services, which
will require all prescription drugs to have a unique serial code
for authentication and traceability.
Supply Chain Services consists of Aquilant, a leading provider
of outsourced sales, marketing, distribution and engineering
services to the medical and scientific sectors in the UK, Ireland
and the Netherlands and our minority interest in Medicare, a
pharmacy chain in Northern Ireland.
The company is listed on the London Stock Exchange and is a
constituent of the FTSE 250.
For more information please go to: www.udghealthcare.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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