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UDG Healthcare H1 Profit Surges, Lifts FY19 View On Acquisitions; Stock Up

UDG Healthcare plc (UDG.L, UDHCF) said Tuesday that its first-half profit before tax was $30.3 million, compared to prior year's $1.7 million. Earnings per share were 9.27 US cents, up from 0.44 US cents a year ago.

The healthcare services provider's adjusted profit before tax was $64.5 million, compared to $63.2 million last year.

Adjusted earnings per share were 21.21 cents, up from 20.19 cents last year.

Adjusted net operating margin increased to 12.5 percent from 11.8 percent last year.

Revenue for the first half dropped 3 percent to $656.6 million from prior year's $675.3 million. Total net revenue declined 4 percent on a reported basis and 1 percent on constant currency basis.

Net underlying revenue growth was 6 percent.

Further, the company announced that interim dividend per share increased 5 percent to 4.46 US cents per share.

Separately, UDG Healthcare announced two acquisitions in its Ashfield Communications and Advisory business for a combined consideration of up to $106 million.

The company acquired Putnam Associates, a US-based strategic management healthcare consultancy, for up to $88.6 million, and Incisive Health, a UK-based healthcare policy and communications consultancy, for up to 13.6 million pounds or $17.7 million.

Reflecting the acquisitions and continued trading performance in line with expectations, the company has increased its full year guidance for adjusted earnings per share growth, under IAS 18, to between 5 percent and 7 percent.

The company previously expected adjusted earnings per share to grow between 4 percent to 6 percent from last year's 45.9 U.S. cents.

In London, UDG Healthcare shares were trading at 677 pence, up 3.28 percent.

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