UDG Healthcare has reported a 9% increase in pre-tax profits for the year to the end of September and said it remained very positive about its future growth prospects.
The Irish international healthcare services company said its adjusted pre-tax profits rose by 9% to €70m, while revenues for the year increased by 5% to €2.127 billion.
UDG's chief executive Liam FitzGerald said that 2014 was another year of substantial progress for the group.
He noted that its operating profit increased by 9%, EPS was 8% ahead of the prior year and its dividend increased by 6%.
The company has proposed a 7% increase in the final dividend to 7.43 cent per share. This gives a total dividend for the year of 10.12 cent per share, up 6% on last year.
The dividend increase continues the company's 25 year history of consistent dividend growth.
UDG reported very strong growth in its Ashfield Commercial and Medical Services division, with full year operating profits up 32% to €43.3m and revenues growing by 27% to €496.7m.
It noted that Ashfield had become a leader in healthcare communications with the purchase of KnowledgePoint360 in March and Galliad in July.
Revenues at UDG's supply chain services division fell by 2% to €1.451 billion while operating profits dropped by 13% to €40.2m as disposals and market conditions impacted the division's financial performance.
The company said that revenues in its wholesale business were below the previous year and while it continue to increase its market share in Ireland, the overall value of the market declined due to Government-led medicine price reductions.
Operating profits at UDG's Sharp packaging services division grew by 22% to €19.1m while revenues rose 7% to €178.6m as the European business made a modest profit in the 12 month period. The company also said that significant capacity expansion has started for the US business.
UDG's chief executive Liam FitzGerald said that the group has strong market positions and is well positioned to benefit from the growth in outsourcing throughout the healthcare industry as companies react to rapidly changing business requirements.
"Additionally, we are investing in increased capacity, systems, quality and compliance structures to allow clients to outsource key activities with confidence," Mr FitzGerald added.
"The group has considerable long-term financing facilities available and good internally generated cash flow to support our growth objectives. We remain very positive about our future growth prospects," he added.
