UDG Healthcare plc (LON:UDG), a leading international provider of healthcare services, issued the following trading update covering the period from 1 October to 31 December 2018. The Group will hold its Annual General Meeting in Dublin at 12.00pm today.
First Quarter to 31 December 2018
The Group has made a good start to the financial year with constant currency profit before tax for the quarter to 31 December 2018 well ahead of the same quarter last year, and in-line with the Group’s previously communicated expectations.
This performance has been driven by good underlying growth supplemented by the impact of acquisitions completed in FY18.
Ashfield’s operating profit was ahead of the same quarter last year. Communications and Advisory continues to perform well with operating profit ahead of the same quarter last year including the benefit of acquisitions completed in FY18. Commercial & Clinical has started the year as expected, with good momentum in the US underpinning the operating profit which is in line with the same quarter last year.
Sharp’s operating profit was significantly ahead of the same quarter last year. This reflects continued strong momentum in the US during the first quarter of this year, along with a weak comparative period in the first quarter of last year.
Group Outlook & Development
Based on the Group’s good trading performance during the first quarter of the financial year, the Group expects constant currency adjusted diluted earnings per share (EPS)1 for the year to 30 September 2019 to be between 4%-6% ahead of last year’s EPS of US$ 45.9c2.
The Group’s strong balance sheet leaves it well placed to make further strategic acquisitions as those opportunities arise, complementing its continued underlying profit growth.
1 Before the amortisation of acquired intangible assets, transaction costs and exceptional items.
2 The new revenue recognition standard (IFRS 15 ‘Revenue from Contracts with Customers’) is effective for the Group from 1 October 2018. The Group adopted the new standard under the modified retrospective transition approach. Under this transition method, the new standard is applied from 1 October 2018 without restatement of comparative period amounts. The Group Outlook and Development are therefore presented under the previous revenue recognition accounting principles (including IAS 18 ‘Revenue’), on a consistent basis to the comparative period.
Date for Interim Results
UDG Healthcare will issue its interim results for the six months to 31 March 2019 on Tuesday 21 May 2019.