Healthcare services company United Drug has reported a 15% increase in pre-tax profits for the six months to March 31 and said it expected strong profit growth for the rest of the year.
The company said its pre-tax profits rose to €33.28m from €29.01 the same time last year. Revenues increased by 9% to €845m from €773m the same time last year.
United Drug said its adjusted diluted earnings per share for the six months rose to 12.13 cents from 10.73 cents a year earlier. It has declared an interim dividend of 2.23 cent per share, up 13% over the 2007 interim dividend.
The company said that each of its four operating divisions traded successfully in the six months to March, and are managing the challenges they face 'extremely well'.
Risks facing it in the next six months include strong competition, changes in government regulations, interest rate movements and adverse movements in foreign currency exchange rates.
However, the company said it expected the strength of current trading to continue into the second half.
'The weakness in the value of sterling relative to the euro will continue to adversely impact on the translation of profits but full-year profits and earnings are still expected to show strong growth over the 2007 results,' it added.
The company said it remained positive about the fundamentals of its core markets. 'We have the opportunity and internal resources to continue to expand both organically and through acquisition to continue the development of United Drug,' it said.
United Drug shares closed up nine cent at €3.90 in Dublin.
