United Drug has annnounced interim pre-tax profits up 23% to just over €16m and has proposed splitting its shares as it believes the present price its shares trade at make it unattractive to private investors.
The proposed split would see the nominal value of United's shares change from 32 cent to 5 cent. An EGM will be held to decide on the plan.
Group turnover increased by 18% to €561,447, trading profit was 22% higher at €17,740. Earnings per share, excluding goodwill amortisation and exceptional item was at 43.52 cent.
Referring to the share split, United Drug chairman Martin Rafferty said in a statement that even though the volume of trading in United Drug shares had increased substantially over the last three years, the board thinks it would be in shareholders' interest to facilitate a further move in this regard.
'The increase in our share price means that we are one of the few shares in our company size with a double digit share price, and this may be unattractive to private investors,' he said.
'It is therefore proposed to recommend to shareholders that we split the shares. This will greatly increase the number of shares in issue and should facilitate greater ease in trading United Drug shares,' he added.
United Drug shares closed 23 cent higher at €13.83 in Dublin this evening.
