"We think there are a couple of sellers in the market," was the defence offered by UDG (UDG) chief Brendan McAtamney the day the healthcare services group released these results. A wry comment in the face of a sharp share price fall that accompanied their release, but understandable given they represent a comfortable beat to adjusted EPS growth projections, ending months of speculation that UDG would fail to meet forecasts. In the end, a growth rate of 22 per cent came in above the upper range of expectations, while a particularly strong second half helped lift adjusted operating profits by 12 per cent at constant currencies to $148m (£116m).
Broker Liberum said it expected the numbers to be well received, but it seems investors weren’t pleased with the level of one-off costs – largely relating to impairment charges – or news that investment will ramp up in the Ashfield division this year.
Liberum expects to see EPS of 48.8¢ for the year ending September 2019, moving up to 53.6¢ in FY2020.
| UDG HEALTHCARE (UDG) | ||||
| ORD PRICE: | 582p | MARKET VALUE: | £1.45bn | |
| TOUCH: | 581.5-583p | 12-MONTH HIGH: | 951p | LOW: 560p |
| DIVIDEND YIELD: | 2.1% | PE RATIO: | na | |
| NET ASSET VALUE: | 356¢* | NET DEBT: | 7% | |
| Year to 30 Sep | Turnover (€bn) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
| 2014 | 0.76 | 108 | 40.4 | 10.1 |
| 2015 | 0.92 | 53.6 | 16.2 | 11.0 |
| Year to 30 Sep | Turnover ($bn) | Pre-tax profit ($m) | Earnings per share (¢) | Dividend per share (¢) |
| 2016 | 1.08 | 83.5 | 27.6 | 12.5 |
| 2017 | 1.22 | 92.8 | 29.0 | 13.3 |
| 2018 | 1.32 | 8.4 | 1.5 | 16.0 |
| % change | +8 | -91 | -95 | +20 |
| Ex-div: | 10 Jan | |||
| Payment: | 4 Feb | |||
| *Includes intangible assets of $757m or 305¢ a share £1=$1.28 | ||||
