United Drug 2006 Interim Trading Update
United Drug plc (“UD” or the “Group”) (ISE:UDG) (LSE:UDG), a leading provider of services to pharmaceutical retailers and manufacturers in Ireland and the UK, today issued the following trading update in advance of its interim results for the six months to 31 March, 2006. The Group will announce interim results on 11 May, 2006.
Period in Review
In line with our expectations United Drug achieved good revenue growth in each of its four divisions in the first half of 2006. Operating profit and earnings for the period should be ahead of the same period last year and are expected to show double digit growth.
The three acquisitions completed in the second half of 2005, In2Focus, TD Packaging and Presearch are now established as part of the Group and are on target to deliver their first year earn-out numbers.
Outlook
United Drug expects the strength of the current trading performance to continue into the second half of the financial year.
The Group remains positive about the fundamental dynamics driving consumption of goods and services in healthcare in our core markets and about our positions within those markets. As expected, discussions between the Irish Health Service Executive and the various partners in the Irish pharmaceutical supply chain have commenced and a new agreement covering the pricing and reimbursement of medicines should be in place before the end of the 2006 calendar year. The Group continues to see opportunities to expand our outsourcing businesses, both organically and through acquisition.
Conference Call
The UD management team will host a conference call for investors and analysts today at 14.30 BST (09.30 ET). For conference call dial in details, please contact K Capital Source on +353 1 631 5500 or UnitedDrug@kcapitalsource.com
About United Drug plc
United Drug is a leading provider of services to pharmaceutical retailers and manufacturers. It is the largest pharmaceutical wholesaler in the island of Ireland. UD is also the market leader in contract distribution outsourcing (pre-wholesaling) in Ireland and has achieved the No. 1 position in the UK through its joint venture business UniDrug Distribution (UDG).
In addition to contract distribution services for pharma manufacturers, United Drug provides contract distribution, sales & marketing and technical services to Medical & Scientific equipment & consumable manufacturers, with a market leading position in Ireland and an emerging presence in the UK.
United Drug is also a leading provider of contract sales outsourcing services to pharmaceutical manufacturers in the UK and Ireland.