TIDMUDG
RNS Number : 2540D
UDG Healthcare Public Limited Co.
30 January 2018
UDG HEALTHCARE PLC
FIRST QUARTER TRADING UPDATE
Good start to the financial year and full year guidance
issued
30 January 2018
UDG Healthcare plc ("the Group"), a leading international
provider of healthcare services, issues the following trading
update covering the period from 1 October to 31 December 2017. The
Group will hold its Annual General Meeting in Dublin at 12.00pm
today.
First Quarter to 31 December 2017
Group
The Group has made a good start to the financial year with
profit before tax for the quarter to 31 December 2017 well ahead of
the same quarter last year, aided by recent acquisitions.
Ashfield
Ashfield's operating profit was significantly ahead of the same
quarter last year, driven by underlying growth and the benefit of
acquisitions completed in FY17.
The acquisitions completed during the second half of FY17
(Sellxpert, Vynamic, Cambridge BioMarketing and MicroMass
Communications) are together performing in line with
expectations.
Sharp
As anticipated, Sharp's operating profit was behind the same
quarter last year as the unusually high churn evident in the US
commercial business during the second half of FY17 carried through
into the first quarter of FY18, and as extensive September 2017
hurricane damage in Puerto Rico disrupted manufacturing schedules
at a number of our clients in subsequent months.
Both factors are expected to abate as the year progresses and
the performance of Sharp US is expected to improve during the
second half of 2018, driven by an improving business activity
pipeline with both new and existing clients.
Sharp Europe continues to demonstrate positive trading momentum
and was profitable during the first quarter of the year.
Aquilant
Aquilant's operating profit was in line with the same quarter
last year.
US Tax Changes
The Group has undertaken a preliminary review of the recently
enacted US tax reform legislation.
Given that the US accounts for a significant proportion of total
earnings, the Group expects that the reduction in the headline US
federal corporate tax rate from 35% to 21% will have a beneficial
impact with effect from 1 January 2018. Based on our preliminary
analysis, the effective Group tax rate for FY18 is expected to be
4% lower than previously anticipated at approximately 19%.
The Group continues to review all of the provisions of the
legislation to determine the full impact in the coming years and
expects to provide a further update when it reports its FY18
interim results on Tuesday, 22 May 2018.
Group Outlook & Development
Based on the Group's performance during the first quarter of the
financial year and the taxation benefit outlined above, the Group
expects constant currency adjusted diluted earnings per share
(EPS)(1) for the year to 30 September 2018 to be between 18% to 21%
ahead of last year's EPS of US$ 37.1c.
The Group expects that given the additional Future Fit operating
costs during the first half of the year and the phasing of Sharp's
growth, FY18 underlying profit growth will be largely delivered
during the second half of the year.
The average FY17 exchange rates were US$1 = GBP0.7891 and
EUR0.9047. Based on exchange rates prevailing during the first
quarter, the Group does not expect foreign exchange to have a
material impact in FY18.
The Group remains active from a corporate development
perspective and its strong balance sheet leaves it well placed to
execute further strategic acquisition opportunities as they
arise.
(1) Before the amortisation of acquired intangible assets,
transaction costs and exceptional items
Investor Event
The Group will hold an event for analysts and investors in the
US on the 20 and 21 February 2018 at its Sharp facility in
Allentown, Pennsylvania and its Ashfield facility in Fort
Washington, Pennsylvania.
Further information and registration is available via the
Group's website www.udghealthcare.com or by contacting
udghealthcare@powerscourt-group.com.
Date for Interim Results
The Group will issue its interim results for the six months to
31 March 2018 on Tuesday 22 May 2018.
Conference Call
UDG Healthcare plc will host a conference call for investors and
analysts at 9.00am (GMT) today, Tuesday 30 January to discuss this
statement. The dial-in details are as follows:
Standard International Access: +44 (0) 20 3003 2666
UK Toll Free: 0808 109 0700
Ireland: +353 (0) 1 436 0959
Password: UDG
A playback facility will be available for seven days on +44 (0)
20 8196 1998. The access code for the replay will be 8908246#.
Forward Looking Statements
Some statements in this announcement are or may be forward
looking statements. They represent expectations for the Group's
business, including statements that relate to the Group's future
prospects, developments and strategies, and involve risks and
uncertainties both general and specific. The Group has based these
forward-looking statements on assumptions regarding present and
future strategies of the Group and the environment in which it will
operate in the future. However, because they involve known and
unknown risks, uncertainties and other factors including but not
limited to general economic, political, financial and business
factors, which in some cases are beyond the Group's control, actual
results, performance, operations or achievements expressed or
implied by such forward looking statements may differ materially
from those expressed or implied by such forward-looking statements
and accordingly you should not rely on these forward looking
statements in making investment decisions. Except as required by
applicable law or regulation, neither the Group nor any other party
intends to update or revise these forward-looking statements after
the date these statements are published, whether as a result of new
information, future events or otherwise.
For reference:
Investors and Analysts: Keith Byrne
Alan Ralph Head of IR, Strategy
CFO & Corporate Communications
UDG Healthcare plc UDG Healthcare plc
Tel: + 353-1-468-9000 Tel: + 353-1-468-9000
Business / Financial
media:
Lisa Kavanagh / Jack
Hickey
Powerscourt
Tel: + 44-207-250-1446
About UDG Healthcare plc:
UDG Healthcare plc (LON: UDG) is a leading international partner
of choice delivering commercial, clinical, communications and
packaging services to the healthcare industry, employing over 9,000
people with operations in 24 countries and delivering services in
over 50 countries.
UDG Healthcare plc operates across three divisions: Ashfield,
Sharp and Aquilant.
Ashfield is a global leader in commercialisation services for
the pharmaceutical and healthcare industry, operating across two
broad areas of activity: commercial & clinical services, and
communications services. It focuses on supporting healthcare
professionals and patients at all stages of the product life cycle.
The division provides field and contact centre sales teams,
healthcare communications, patient support, audit, advisory,
medical information and event management services to over 300
healthcare companies.
Sharp is a global leader in contract commercial packaging and
clinical trial packaging services for the pharmaceutical and
biotechnology industries, operating from state-of-the-art
facilities in the US and Europe.
Aquilant is a leading provider of outsourced sales, marketing,
distribution and engineering services to the medical and scientific
sectors in the UK, Ireland and the Netherlands.
The company is listed on the London Stock Exchange and is a
constituent of the FTSE 250. For more information, please go to:
www.udghealthcare.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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