(Alliance News) - UDG Healthcare PLC on Wednesday said it delivered a "strong trading performance" in its interim period, but expects its second half to be hit by the Covid-19 outbreak.
In the six months to March 31, pretax profit at constant currency was "well ahead" of the year prior.
The Ashfield healthcare advisory unit benefitted from new acquisitions as well as "good underlying growth".
The Sharp manufacturing arm meanwhile "performed very strongly, delivering double digit underlying operating profit growth".
"The group delivered a strong trading performance for the six months to March 31. However, the group expects lower activity levels than previously anticipated during the second half," UDG said.
"Given the ongoing uncertainty and near-term challenges presented by the Covid-19 outbreak, the group is withdrawing its constant currency earnings per share guidance."
The company had expected constant currency adjusted diluted earnings per share for the financial year to be between 7% and 9% above last year's EPS of 47.3 US cents.
UDG said: "The group is actively adopting cost control measures to mitigate the potential negative impacts from Covid-19. These measures have included: the reduction of appropriate variable costs; tight control of discretionary expenditure; a recruitment freeze; reducing freelancer expenditure; and a temporary reduction in labour including reduced working hours and furloughing of employees."
The board and its senior executive team have taken a 20% cut to salary and fees for the next three months at least.
UDG is penned to release its interim results on May 19.
Shares in the company were 9.4% lower at 566.50 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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