(Alliance News) - UDG Healthcare PLC on Tuesday reported an improved performance in the first half of its current financial year but said it is experiencing challenges going forward.
The healthcare services provider said pretax profit grew to USD62.3 million in the six months to the end of March, more than double the USD30.3 million reported a year earlier, as revenue increased by 5.6% to USD693.6 million from USD656.6 million. On a constant currency basis, revenue increased by 10%.
Back in April, UDG Healthcare suspended its interim dividend and withdrew its guidance for its current financial year due to Covid-19 uncertainty.
"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," said Chief Executive Brendan McAtamney.
Ashfield provides healthcare advisory, communications, commercial and clinical services to the healthcare and pharmaceutical industry. Sharp offers clinical trial management and contract packaging.
Within Ashfield, UDG Healthcare said it continue to serve its clients remotely, where possible, although the company said it has seen some project deferrals and cancellations.
Sharp, which has been categorised as essential, continues to operate, with demand remaining "very robust". However, UDG Healthcare said temporary disruption to production schedules and capacity resulting from the additional health and safety measures, along with workforce availability, is expected to reduce efficiency and revenue within the business.
"While uncertainty remains, I am confident the decisive actions taken now will ensure we remain well positioned through the crisis and beyond," concluded CEO McAtamney.
UDG Healthcare shares were trading 3.9% higher in London on Tuesday at 648.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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