UDG Healthcare Public Limited Co. Q3 Trading Statement (1950G)

TIDMUDG

RNS Number : 1950G

UDG Healthcare Public Limited Co.

04 August 2016

UDG HEALTHCARE PLC

THIRD QUARTER TRADING UPDATE

Continued Growth and Full Year Guidance Reiterated

4 August 2016:

UDG Healthcare plc ("the Group"), a leading international provider of healthcare services, issues the following trading update covering the period from 1 April 2016 to 30 June 2016.

Quarter to 30 June 2016

Trading performance for the quarter to 30 June 2016 has been good with Group revenues and adjusted operating profits* ahead of the same period last year.

Ashfield Commercial & Medical Services ("Ashfield")

Trading across the Ashfield division has been good during the three months to June. Operating profits were ahead of the same period last year, with growth across both the commercial and healthcare communications parts of the business.

In April 2016, the Group acquired Pegasus Public Relations Limited, a UK based healthcare communications company. The business has performed well since acquisition.

Sharp Packaging Services ("Sharp")

Divisional operating profits during the three months to June were well ahead of the same period last year.

Trading momentum in Sharp US remains positive. The fit-out of Sharp's new packaging facility in Allentown, Pennsylvania was completed in April. Commercial production from biotech packaging lines, transferred from our existing facilities, began in June. New business production is expected to commence in early FY17. This investment has increased Sharp's commercial packaging capacity by 30%.

Aquilant

Operating profits in Aquilant were slightly behind the same quarter in 2015.

Nine months to 30 June 2016

Group revenues and adjusted operating profits* for the continuing business for the nine months to 30 June 2016 were well ahead of the prior year.

Operating profit growth in the nine months to June has been driven by the continued strong underlying profit growth in both Sharp and Ashfield, supplemented by the benefit of currency movements.

Reporting Currency

Following the disposal of the United Drug Supply Chain and MASTA businesses in April 2016, the geographic profile of the Group's businesses has changed considerably and the vast majority of the Group's profits are now generated in currencies other than Euro. Over half of the Group's profits are currently generated in US Dollars, the Group's US based businesses are demonstrating the greatest growth opportunities and future corporate development activity is likely to be US focused. Consequently, the Board of Directors ("the Board") has decided that from the start of its next financial year, 1 October 2016, the Group will present its financial results in US Dollars.

The Board expects that the change in reporting currency will provide a clearer understanding of the Group's financial performance and reduce the impact of currency movements on the Group's reported results.

The Board intends that from 2017, dividends will be declared in US Dollar rather than in Euro, with shareholders having the option to receive their dividends in either US Dollar, Euro or Pound Sterling. The Company's share capital will remain denominated in Euro and existing share certificates will remain valid.

To assist investors with this change, the Group intends to provide historical financial information in early 2017, incorporating income statements, balance sheets and cash flow statements, in US Dollars.

Group Outlook & Development

The Group reiterates its full year market guidance of 6-8% adjusted diluted EPS* growth for the continuing Group on a constant currency basis for the financial year ending 30(th) September 2016.

The average 2015 financial year exchange rates were EUR1 = GBP0.74 and $1.15. Based on the average exchange rates for the first nine months of fiscal year 2016 of EUR1 = GBP0.76 and $1.11 and current exchange rates, it is likely that there will not be a material foreign exchange translation impact on reported EPS growth for the full year.

While the ultimate timing and implications of the UK's exit from the EU remains uncertain following the "Brexit" referendum decision, the Group has not yet seen any material impact on underlying trading performance. The majority of the Group's operating profits are generated outside of the UK. In addition, the Group's UK businesses mainly operate in market segments which the Group does not expect will be materially affected by the UK's decision to leave the EU.

The long term fundamentals of the Group's businesses remain unchanged, and the Group remains confident in the future growth prospects of its businesses.

Following the disposal of the United Drug Supply Chain and MASTA businesses which completed on 1 April 2016, the Group is now in a net cash position. This leaves the Group well positioned to continue its corporate development activities, which should serve to complement its underlying profit growth. The Group expects to deliver a good underlying cashflow performance for the year and reiterates its dividend guidance for FY16, whereby it expects to continue its long history of dividend growth.

* Before the amortisation of acquired intangible assets, transaction costs and exceptional items

Capital Markets Day

The Group will hold a Capital Markets Day for analysts and investors on the afternoon of 27 September 2016 at Glaziers Hall, London. The event will be hosted by CEO Brendan McAtamney with presentations from the UDG Healthcare executive and divisional management teams. The event will provide attendees with an overview of the Group, including an update on strategy and Group development. Please contact [e-mail] to register your attendance.

Date for Preliminary Results

The Group expects to issue preliminary results for the twelve months to 30 September 2016 on Thursday 24 November 2016. As noted earlier, these results will be the last set of results which the Group will present in Euro, with subsequent results (starting with the interim results for the six months to 31 March 2017) reported in US Dollars.

Conference Call

UDG Healthcare plc will host a conference call for investors and analysts at 9.00am (BST) today, 4 August 2016 to discuss this statement. The dial-in details are as follows:

Standard International Access: [phone]

UK Toll Free 0808 109 0700

Ireland [phone]

Password UDG Healthcare

A playback facility will be available for seven days on [phone]. The access code for the replay will be 6580690#.

Forward Looking Statements

This Statement has been prepared by UDG Healthcare plc and contains certain forward-looking statements, beliefs or opinions, including statements with respect to the Company's business, financial condition and results of operations. These statements are made by the Company in good faith based on the information available to it at the date of this Statement and reflect the beliefs and expectations of the directors. By their nature these statements involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future. A number of factors could cause actual results and developments to differ materially from those expressed or implied by the forward-looking statements.

No representation or warranty is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. Forward-looking statements may, and often do, differ materially from actual results. Any forward-looking statements in this Statement speak only as of their respective dates, reflect the Company's current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company's operations and growth strategy. Subject to the requirements of the Financial Conduct Authority, the London Stock Exchange, the Listing Rules and the Disclosure and Transparency Rules (and/or any regulatory requirements) or applicable law, the Company explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this Statement that may occur due to any change in the Company's expectations or to reflect events or circumstances after the date of this Statement.

For reference:

Investors and Analysts:

   Alan Ralph                                               Keith Byrne 
   CFO                                                         Head of Investor Relations & Strategy 
   UDG Healthcare plc                                 UDG Healthcare plc 
   Tel: [phone]                             Tel: + 353-1-468-9000 

Media:

Lisa Kavanagh / Nick Dibden / Jack Hickey

Powerscourt

Tel: [phone]

About UDG Healthcare plc:

UDG Healthcare plc (LON: UDG) is a leading international provider of services to the healthcare industry, employing over 7,000 employees at operations across 19 countries including the US, UK, Ireland and Germany.

UDG Healthcare plc operates across three divisions: Ashfield Commercial & Medical Services, Sharp Packaging Services and Supply Chain Services.

Ashfield Commercial & Medical Services is a global leader in commercialisation services for the pharmaceutical and healthcare industry, operating across two broad areas of activity: commercial and clinical services, and healthcare communications. It focuses on supporting healthcare professionals and patients at all stages of the product life cycle. The division provides sales teams, healthcare communications, telesales, nurse educators, medical information, pharmacovigilance (drug safety), regulatory and event management services to over 300 healthcare companies in 18 countries.

Sharp Packaging Services is a global leader in contract packaging and clinical trial packaging services for the pharmaceutical and biotechnology industries, operating from state of the art facilities across the US and Europe. Sharp is also a world leader in 'Track and Trace' serialisation services, which will require all prescription drugs to have a unique serial code for authentication and traceability.

Supply Chain Services consists of Aquilant, a leading provider of outsourced sales, marketing, distribution and engineering services to the medical and scientific sectors in the UK, Ireland and the Netherlands and our minority interest in Medicare, a pharmacy chain in Northern Ireland.

The company is listed on the London Stock Exchange and is a constituent of the FTSE 250.

For more information please go to: www.udghealthcare.com

This information is provided by RNS

The company news service from the London Stock Exchange

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August 04, 2016 02:00 ET (06:00 GMT)