Healthcare services company United Drug has posted a 14 per cent rise in pretax profits to €52.2 million for the year to September 30th last.
Group turnover rose by 10 per cent to €1.46 billion. When the group share of joint ventures is included, revenue was up 10 per cent to €1.9 billion.
Adjusted diluted earnings per share (eps) for the year rose to 20.22 cent from 17.77 cent in 2005. The company announced a dividend per share of 6.35 cent, up 15 per cent on the dividend for 2005.
Last month, United Drug said it expected its operating profit and earnings for the year to be in line with market expectations and ahead of last year.
United Drug chief executive Liam FitzGerald said yesterday the group had experienced good trading conditions and strong growth in each of its four divisions in 2006.
"Our UK wholesaling and distribution businesses performed really strongly in the period and were ahead by about 30 per cent in the year," said Mr FitzGerald.
"Our contract sales business, which is inherently a bit more volatile than the other businesses, has delivered very strong double-digit earnings growth."
Underlying growth in market volume in its Irish wholesale pharmaceutical business will be reduced somewhat by the impact of the agreement on drug prices between the Health Service Executive and the Irish Pharmaceutical Healthcare Association, which is due to take effect from March 2007, according to Mr FitzGerald.
"It will have a significant impact on growth and we have flagged that quite widely," he said. "We believe that through a combination of continuing to drive productivity in our wholesale business and the potential for further acquisitions, we can continue to meet expectations."
The three acquisitions the company completed in 2005 have delivered strongly, according to Mr FitzGerald. Two further acquisitions were made in the UK in 2006. Mr FitzGerald added that the company was seeking bigger bolt-on acquisitions in the coming years. "We're not looking for transformational acquisitions," he said.
"Our balance sheet is exceptionally strong. Our gearing at the end of the period was 18.3 per cent. So we can comfortably spend up to and over €150 million on acquisitions without in any sense compromising our gearing."
