LONDON (Alliance News) - UDG Healthcare PLC on Tuesday said its trading for the three months to December 31 was well ahead of the prior year, on the back of a strong performance in the US and Europe.
The healthcare provider said operating profit was up across divisions for the first quarter, ahead of its annual general meeting in Dublin on Tuesday, and said, in light of the figures, it expects a good underlying cashflow performance for the year.
In the company's largest division, Ashfield Commercial & Medical Services, UDG Healthcare said a lower growth profile in operating profit growth stemming from its commercial business in the UK had been offset by particularly positive growth in the US and European businesses. It said its healthcare communications business had also delivered good profit growth.
Trading was strong in its contract packaging division, Sharp Packaging Services, with operating profit in the US significantly ahead of the prior year, whilst progress in the European division "continues to be incremental" as it re-aligns the business for future profitability.
Aquilant, the company's specialist healthcare products and services provider, also posted operating profit ahead of the same quarter last year.
The group reiterated its dividend guidance for the full year 2016, ending September 30, of an increase of 11 cents per share. It said it expected constant currency adjusted diluted earnings per share to be between 6.0% and 8.0% ahead of last year's earnings per share of 27.40 cents.
Elsewhere the company said its Chief Executive would be stepping down on Tuesday, bringing forward the handover which was announced in September. Brendam McAtamney will take over from Liam Fitzgerald after the annual general meeting.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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