(Adds details, executive comments, share price)
By Roshni Menon
May 14 (Reuters) - With more than 100 million euros in itswar chest, UDG Healthcare Plc is seeking acquisitions toexpand its contract outsourcing and healthcare communicationsbusiness, company executives said on Thursday.
The business, already the biggest contributor to theDublin-based company's operating profit, publishes case studies,magazines and provides public relations services in the medicalbusiness.
"The healthcare communications market is still veryfragmented so there's some very nice opportunities toconsolidate," UDG Chief Operating Officer Brendan McAtamney toldReuters. "We will look to add complementary assets."
McAtamney was speaking after UDG reported a 19 percent jumpin first-half adjusted operating profit. The company also raisedits full-year adjusted earnings per share growth forecast to 7-9percent at constant currency.
It had earlier forecast a 5-8 percent rise for the financialyear ending Sept. 30.
Though some of the world's top healthcare communicationscompanies are from the stables of advertising majors such asOmnicom Group Inc and Publicis Group SA, thereare many small, privately owned players in the market.
UDG bought three of them last year, following up its $144million purchase of KnowledgePoint360 in February with a smallerdeal in July for specialist PR companies Galliard and Nyxeon.
These acquisitions contributed to a 35 percent jump infirst-half revenue at Ashfield, the unit of UDG that houseshealthcare communications and contract outsourcing services suchas nurse educators, telesales and event management.
McAtamney said that UDG could also make bolt-on acquisitionsin contract outsourcing in those countries where it is notalready a market leader.
UDG, a 67-year-old company once known as United Drug, postedan adjusted operating profit of 53.6 million euros ($60.9million) for the six months ended March 31.
The weaker euro also helped. The euro hasdepreciated 15 percent against the dollar and 7 percent againstthe pound in the first half of UDG's financial year.
UDG reports in euros but makes about 70 percent of itsprofit in pounds and dollars.
The company increased its interim dividend to 2.90 cents pershare from 2.69 cents per share a year earlier.
UDG's shares gained 43 percent in the six months to March 31and a further 14 percent to Wednesday's close. They were largelyunchanged at 539.5 pence at 1200 GMT. ($1 = 0.8799 euros) ($1 = 0.6330 pounds) (Editing by Robin Paxton)
