Health services provider United Drug said today it expects operating profit for the 12 months to the end of September to be ahead of last year.

The group, which is due to issue its end of year results in mid-November, said revenues and operating profits for the nine months to the end of June 2011 were ahead of last year and in line with expectations.

In an interim statement issued today United said conditions remain strong with all divisions trading well.

"The international development of the group has continued to manifest itself during this period with our businesses outside of Ireland contributing over 65 per cent of profits," it said.

However, it added that revenue in the company's Irish businesses continues to be impacted by measures taken by healthcare authorities to reduce spending.

United said that to offset the impact of these measures it was "rationalising" its cost base locally and was focused on fully integrating its most recent acquisitions into the group. It said these changes would result in a once-off restructuring charge of €9 million but would deliver annualised savings in excess of €5 million once completed.

Listed in both Dublin and London, United Drug is a leading international provider of services to healthcare manufacturers and pharmaceutical retailers, with operations in Ireland, the UK, the Netherlands, Belgium, Sweden and the US.