The "year of transformation" for UDG Healthcare (UDG) is largely complete, says chief executive Liam FitzGerald. The medical wholesaler and pharma-services business reported a 9 per cent increase in operating profits to €103m (£82m) last year, after its Ashfield division underwent a significant rebranding effort.
Ashfield, which provides various communications services to healthcare companies - including sales teams, telesales and education staff - performed well. It reported a 27 per cent increase in revenue to €497m, which boosted operating profits by 32 per cent to €43m. Admittedly, the year’s acquisitions (including KnowledgePoint360 in March and public relations outfit Galliard in July) helped lift the numbers.
UDG's supply chains business told a different story. The division reported a 2 per cent decline in revenue and a 13 per cent drop in operating profits to €40.2m. Mr FitzGerald said pricing pressures and a competitive market had held back growth. But he said the shift in UDG’s business model towards Ashfield would "more than offset" any future profit decline in the division.
Analysts at Investec expect pre-tax profits of €90.2m for the current financial year, giving EPS of 29.6ȼ, up from €86.6m and 28.8p respectively.
| UDG HEALTHCARE (UDG) | ||||
|---|---|---|---|---|
| ORD PRICE: | 337p | MARKET VALUE: | £816m | |
| TOUCH: | 337-339p | 12-MONTH HIGH: | 380p | LOW: 293p |
| DIVIDEND YIELD: | 2.4% | PE RATIO: | 9 | |
| NET ASSET VALUE: | 220ȼ* | NET DEBT: | 46% | |
| Year to 30 Sep | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (ȼ) | Dividend per share (ȼ) |
|---|---|---|---|---|
| 2010 | 1.72 | 54.4 | 18.7 | 8.4 |
| 2011 | 1.74 | 44.1 | 15.1 | 8.66 |
| 2012 | 1.83 | 59.0 | 20.0 | 9.04 |
| 2013 | 2.03 | 33.8 | 11.5 | 9.56 |
| 2014 | 2.13 | 125.0 | 45.7 | 10.12 |
| % change | +5 | +270 | +299 | +6 |
Ex-div: 27 Nov Payment: 23 Feb *Includes intangible assets of €489.5m, or 202ȼ per share £1 = €1.25 | ||||
