UDG Healthcare profits rise as Ashfield and Sharp drive earnings

FTSE 250 healthcare services provider UDG Healthcare posted a jump in full-year profit on Tuesday as its two global platforms, Ashfield and Sharp, continued to drive earnings.

In the year to 30 September, adjusted pre-tax profit rose 17% to $138.8m on revenue of $1.32bn, up 8% on the previous year. Diluted earnings per share were up 24% to $45.94 and the dividend per share was lifted by 20% to 16 cents.

Net debt edged up to $60.8m in the year from $53.3m in 2017.

UDG said Ashfield Communications & Advisory, including the benefit of acquisitions, was the main driver of earnings growth, supported by Sharp US, which delivered a particularly strong performance in the second half of the year.

Chief executive officer Brendan McAtamney said: "Looking ahead to 2019, we expect continued progress, both organically and through further strategic acquisitions. We expect good underlying profit growth in both Ashfield Communications & Advisory and Sharp, particularly in the US. In Ashfield Commercial & Clinical we will continue to diversify and differentiate our service offering, although in the short term we expect there to be some ongoing softness.

"As we have done in previous years we will also continue to invest in our talent, systems and infrastructure, to ensure we continue to have an effective platform for future sustainable growth."