TIDMUDG
RNS Number : 1229X
UDG Healthcare Public Limited Co.
08 August 2018
UDG HEALTHCARE PLC
THIRD QUARTER TRADING UPDATE
8 August 2018
UDG Healthcare plc ("the Group"), a leading international
provider of healthcare services, issues the following trading
update covering the period from 1 April 2018 to 30 June 2018.
Quarter to 30 June 2018
Group trading performance for the quarter to 30 June 2018 was
ahead of the same quarter last year. Strong contributions from
acquisitions and good underlying growth from Ashfield
Communications & Advisory and Sharp more than offset a lower
contribution from Ashfield Commercial & Clinical and
Aquilant.
Ashfield
Ashfield Communications & Advisory performed strongly in the
quarter due to a combination of good underlying growth and the
benefit of acquisitions.
Ashfield Commercial & Clinical experienced a challenging
quarter with operating profit well below the same quarter last year
due to the phasing of contracts and fewer new business development
opportunities.
Overall, trading in Ashfield was ahead of the same quarter last
year.
In July 2018, the Group announced the acquisitions of Create
NYC, an innovative communications agency and SmartAnalyst, a
strategic commercialisation consulting and analytics business for a
combined consideration of up to $82.4 million.
Sharp
Sharp delivered double digit operating profit growth ahead of
the same quarter last year. This was driven by a strong performance
in Sharp US, offset by a slower than anticipated ramp-up in
activity levels in Sharp Europe.
Aquilant
Trading was well behind the same quarter last year due to the
previously announced exit of contracts with VSI and Link.
Nine months to 30 June 2018
Group revenue and profit before tax* for the nine months to 30
June 2018 was well ahead of the prior year, primarily driven by the
benefit of acquisitions completed in 2017.
Aquilant Disposal
As separately announced today, the Group has completed the
disposal of Aquilant for a total potential net consideration of up
to EUR23 million (approximately $27 million) to H2 Equity Partners.
Aquilant represented approximately 4% of the Group's operating
profits in the six month period ended 31 March 2018. Proceeds from
the transaction will be used to fund the continued development of
the Group's higher growth and higher margin divisions, Ashfield and
Sharp.
Board Appointment & Management Changes
In July 2018, the Board announced the appointment of Mr. Erik
Van Snippenberg as a Non-Executive Director of the Group with
effect from 2 July 2018. Erik spent almost thirty years at GSK
where he held a number of senior executive roles.
As previously announced, Chris Corbin retired as Executive
Chairman of Ashfield on 30 June 2018. However, he has agreed to
continue on the Board in a Non-Executive Director capacity, subject
to re-election at the Group's Annual General Meeting.
In recognition of the fact Ashfield now represents over two
thirds of the Group's profits and following the completion of seven
Ashfield acquisitions over the last two years, the Group is
undertaking a review of the Ashfield business structure. In
consequence and as previously announced, Rob Wood will head up
Ashfield Advisory, Doug Burcin will lead Ashfield Communications
and Julian Tompkins will head up Ashfield Commercial &
Clinical. All three leaders will report directly to UDG Healthcare
Group CEO, Brendan McAtamney. As a result, Jez Moulding has decided
to seek opportunities externally and will leave the Group at the
end of the current financial year.
Group Outlook
The Group's balance sheet remains strong leaving it with
significant capacity to execute further strategic acquisitions to
complement its existing growth platforms.
The Group reiterates its full year guidance for constant
currency adjusted diluted earnings per share (EPS) growth for the
year to 30 September 2018 to be between 18% and 21% ahead of last
year's EPS of 37.1 $ cent.
The average FY17 exchange rates were US$1 = GBP0.7891 and
EUR0.9047. Based on the current prevailing exchange rates, the
Group is likely to have a modest foreign exchange benefit on the
translation of non-US profits in FY18.
Date for Preliminary Results
The Group expects to issue its preliminary results for the
twelve months to 30 September 2018 on Tuesday 27 November 2018.
Conference Call
UDG Healthcare plc will host a conference call for investors and
analysts at 9am (BST) today, Wednesday 8 August to discuss this
statement. The dial-in details are as follows:
Standard International Access: +44 (0) 203 936 1888
UK Toll Free: 0203 936 1888
Ireland local: 0 155 30187
USA local: 1 646 968 0351
Room number: 985391
Participant PIN: 8469
A playback facility will be available for seven days on 0203 936
1888. The access code for the replay will be 517509
* Before the amortisation of acquired intangible assets,
transaction costs and exceptional items
Forward looking Statements
This announcement contains certain forward-looking statements,
beliefs or opinions, including statements with respect to the
Company's business, financial condition and results of operations.
By their nature these statements involve risk and uncertainty
because they relate to events and depend on circumstances that may
or may not occur in the future. These statements reflect the
reasonable beliefs and expectations of the Company, are made in
good faith and are based on the information available to the
Company at the date of this announcement. However, a number of
factors, including known and unknown risks, uncertainties and other
factors, which are in some cases beyond the Company's control,
could cause actual results and developments to differ materially
from those expressed or implied by the forward-looking
statements.
For reference:
Investors and Analysts:
Keith Byrne
Head of Investor Relations, Strategy & Corporate
Communications
UDG Healthcare plc
Tel: + 353-1-468-9000
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 advisory, communication, commercial, clinical
and packaging services to the healthcare industry, employing over
8,500 people with operations in 25 countries and delivering
services in over 50 countries.
UDG Healthcare plc operates across two divisions: Ashfield and
Sharp.
Ashfield is a global leader in advisory, communication,
commercial and clinical services for the pharmaceutical and
healthcare industries.
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
healthcare industries, operating from state-of-the-art facilities
in the US and Europe.
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
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END
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