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UDG Healthcare posts stronger than expected full-year profits
24th Nov 2020 08:09
(Sharecast News) - UDG Healthcare posted a sharper than expected rise in full-year profits on the back of "strong" growth at its Sharp unit, which focuses on contract clinical, manufacturing and packaging, and is heavily involved in efforts to squash Covid-19.
Boosting Sharp's performance was the fact that almost 2,000 workers were classified as "essential" workers during the pandemic.
On the other hand, some parts of its healthcare advisory unit, Ashfield, were impacted by Covid-19, with the majority of staff having had to resort to remote working.
Yet according to Chief Executive Officer, Brendan McAtamney, the unit "adapted rapidly to support clients virtually and overall Ashfield performed in line with expectations."
Perhaps most interestingly, McAtamney pointed out Sharp's role in the packaging and distribution related to "multiple" clinical trials and treatments for Covid-19 and Ashfield's role in the US government programme to collect blood plasma from patients who have recovered from the novel coronavirus.
For the full-year ending on 30 September, and on an IFRS basis, the healthcare outfit posted a 46% jump in total profits before tax to reach £108.2m, for a 61% surge in earnings per share to 36.85 US cents.
Top line growth came in ahead of the company's own guidance.
That was despite a 1% dip in sales to $1,279.2m.
At period end, the firm's net debt stood at $16.2m, for a leverage ratio of just 0.1 times annualised earnings before interest, taxes, depreciation and amortisation, down from 0.4 times EBITDA.
On the back of its "strong" performance and given the group's strong financial position, the group had repaid all specific government support - although it was not "material" - related to the pandemic.
Management also said the company remained "well-positioned" for future growth even though some parts of Ashfield continued to be impacted by the pandemic.
The final dividend was bumped up by 1.6% to 12.54 US cents, for a 1% increase in the full-year payout to 17.0 US cents.
As of 1026 GMT, shares of UDG Healthcare were 4.54% higher to $783.5.
Boosting Sharp's performance was the fact that almost 2,000 workers were classified as "essential" workers during the pandemic.
On the other hand, some parts of its healthcare advisory unit, Ashfield, were impacted by Covid-19, with the majority of staff having had to resort to remote working.
Yet according to Chief Executive Officer, Brendan McAtamney, the unit "adapted rapidly to support clients virtually and overall Ashfield performed in line with expectations."
Perhaps most interestingly, McAtamney pointed out Sharp's role in the packaging and distribution related to "multiple" clinical trials and treatments for Covid-19 and Ashfield's role in the US government programme to collect blood plasma from patients who have recovered from the novel coronavirus.
For the full-year ending on 30 September, and on an IFRS basis, the healthcare outfit posted a 46% jump in total profits before tax to reach £108.2m, for a 61% surge in earnings per share to 36.85 US cents.
Top line growth came in ahead of the company's own guidance.
That was despite a 1% dip in sales to $1,279.2m.
At period end, the firm's net debt stood at $16.2m, for a leverage ratio of just 0.1 times annualised earnings before interest, taxes, depreciation and amortisation, down from 0.4 times EBITDA.
On the back of its "strong" performance and given the group's strong financial position, the group had repaid all specific government support - although it was not "material" - related to the pandemic.
Management also said the company remained "well-positioned" for future growth even though some parts of Ashfield continued to be impacted by the pandemic.
The final dividend was bumped up by 1.6% to 12.54 US cents, for a 1% increase in the full-year payout to 17.0 US cents.
As of 1026 GMT, shares of UDG Healthcare were 4.54% higher to $783.5.