Healthcare services business UDG (UDG) has had a bumper six months. Strong underlying trading in the Ashfield communications business and the Sharp packaging services division lifted first-half adjusted operating profits by nearly a fifth, as margins grew 40 basis points to 4.7 per cent. In light of the latest figures management has upped its guidance for the full financial year. It now expects EPS growth in the range of 7 to 9 per cent, compared with 5 to 8 per cent previously.
A strong performance in North America helped boost Ashfield's revenues by 35 per cent, while strong profit growth across all geographic regions left operating profits 55 per cent higher at €25.9m (£18.67m). Margins grew by an impressive 120 basis points to 8.9 per cent. The Sharp division also grew margins by 140 basis points to 10.6 per cent, with a strong US performance more than offsetting a €300,000 loss in Europe. Meanwhile, margins dropped 60 basis points to 2.2 per cent in the supply chains business, dragging operating profits down 24 per cent to €15.9m.
Analysts at N+1 Singer nudged up their full-year EPS forecast by 5 per cent to 33.7ȼ, compared with 28.8ȼ last year. That's based on pre-tax profit growth of 19 per cent to €103m.
| UDG HEALTHCARE (UDG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 534p | MARKET VALUE: | £1.3bn | |
| TOUCH: | 533-535p | 12-MONTH HIGH: | 550p | LOW: 315p |
| DIVIDEND YIELD: | 1.4% | PE RATIO: | 15 | |
| NET ASSET VALUE: | 238ȼ* | NET DEBT: | 47% | |
| Half-year to 31 Mar | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2014 | 1.04 | 17.2 | 4.9 | 2.69 |
| 2015 | 1.13 | 28.0 | 8.7 | 2.9 |
| % change | +9 | +63 | +77 | +8 |
Ex-div: 21 May Payment: 3 Jul *Includes intangible assets of €529m, or 216ȼ a share£1 = €1.38 | ||||
