# UDG Healthcare reports Strong H1 FY20 performance

- Link: https://www.directorstalkinterviews.com/udg-healthcare-reports-strong-h1-fy20-performance/412822813
- Published: 2020-05-19T07:30:30+01:00
- Author: Giles Arbor

**UDG Healthcare plc** (LON:UDG), a leading international healthcare services provider,
announced today its results for the six months to 31 March 2020, in which the Group
delivered a strong first half performance and an update on the impact of COVID-19.

**Key updates**

·      Strong H1 FY20 performance well ahead of prior year:

o  Adjusted diluted earnings per share (EPS) increased by 16% (16% on a constant
currency basis)

o  Underlying* net revenue growth of 4%. Total net revenue growth of 10% on a constant
currency basis

o  Underlying* adjusted operating profit growth of 10%. Total adjusted operating
profit increased by 24% on a constant currency basis, reflecting continued growth
in Ashfield and Sharp

o  Ashfield’s operating profit increased by 24% on a constant currency basis, driven
by good underlying growth in Communications & Advisory, and the benefit of 2019 
acquisitions

o  Sharp performed very strongly, with operating profit increasing by 24% on a constant
currency basis driven by strong underlying growth across the division

o  Adjusted net operating margin increased from 12.0% to 13.6%

·      Robust balance sheet with net debt to EBITDA of 0.3x** and a continued strong
cash flow conversion performance

·      In May, Sharp completed the acquisition of a packaging facility in the U.
S., adding incremental capacity to the U.S. commercial packaging business

·      COVID-19 impact:

o  The health and wellbeing of our people and serving our clients remains the Group’s
priority

o  H2 FY20 performance expected to be impacted by COVID-19

o  Ongoing mitigation plans being implemented across the Group

o  As previously announced in the April 2020 trading update, FY20 interim dividend
suspended and FY20 financial guidance withdrawn due to current uncertainty

*underlying growth adjusts for the impact of currency translation movements and 
any acquisition or disposal activity

**calculated in line with financial covenant requirements

**Chief Executive’s comment**

> **UDG Healthcare Chief Executive Officer, Brendan McAtamney commented:**
> “The Group’s priority remains on protecting the health and wellbeing of our people
> and serving our clients during this challenging time. I am immensely proud of 
> the continued hard work and resilience of our people and want to reiterate my 
> continued appreciation for their dedication and commitment. 
> As announced in our April 2020 trading update, we delivered a strong first half
> performance, well ahead of the prior year, driven by underlying growth and acquisitions
> in Ashfield, and strong demand in our Sharp business. While we expect to see an
> impact from COVID-19 in the second half, we are implementing plans across the 
> Group to mitigate this.
> UDG is a strong and diversified business, underpinned by excellent long-term market
> fundamentals and a robust balance sheet and cash flow position. While uncertainty
> remains, I am confident the decisive actions taken now will ensure we remain well
> positioned through the crisis and beyond.”

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