UDG Healthcare ups full year guidance

Wednesday 14 May 2014 08.09
UDG Healthcare's CEO Liam FitzGerald
UDG Healthcare's CEO Liam FitzGerald

UDG Healthcare, the international healthcare services company, has increased its guidance for its full year results.

It said it now expects adjusted diluted earnings per share for the year to September 2014 to be between 5-9% ahead of last year.

It said the increase was due to the underlying trading performance so far this year, the acquisition of KnowledgePoint360 and the upbeat outlook for the rest of the year.

The company today reported adjusted revenues for the six months to the end of March of €1.041 billion, flat on the same time year.

Adjusted profit after tax rose by 3% on a constant currency basis to €30m, while underlying earnings per share rose by 10% when the once-off impacts of rebranding and costs of increased financing are excluded.

It announced a 3% increase in its interim dividend to 2.69 cent per share.

In March, UDG completed the deal to buy KnowledgePoint360 - its largest acquisition - for €108m, which has enabled it to become a leading global provider of healthcare communications services to the healthcare industry

UDG Healthcare said it saw continued very strong growth in its Ashfield commercial and medical services division, with operating profits up 36% in the six month period.

It also sold its Specials business for €27m during the six month period, which it said will enable greater focus on developing its core business.

The company's chief executive Liam FitzGerald said that strong global market positioning continues to be important as UDG's clients seek to outsource more business to fewer, larger, high quality service providers. 

"The re-branding of our divisions in the period will enable us to more effectively market our quality outsourcing services to these international healthcare clients in the future. On the back of the strong underlying trading performance we remain positive about our future growth prospects," he added.