HEALTHCARE AND pharmaceutical services group United Drug expects to deliver another period of double-digit profit and earnings growth for the year to September 30th, despite the fall in the value of sterling, writes Ciarán Brennan.

In a trading statement covering its third quarter from April 1st to June 30th, 2008, the company said it continued to experience good trading conditions across the group.

"For the nine months to June 30th, 2008, overall group performance is well ahead of the corresponding period in the prior year, in line with the group's expectations," it said.

"This strong performance is despite the significant weakening in the value of sterling against the euro during the period," United Drug said.

The fall in the sterling exchange rate reduces the value of sterling profits when translated to euro for reporting purposes.

Goodbody analyst Ian Hunter said it was forecasting that 41 per cent of full-year earnings before interest and tax would be generated in sterling.

During the quarter, United Drug continued its strategy of expansion as an international healthcare services company, making further bolt-on acquisitions in the contract sales and marketing services division in the British market with the acquisitions of Universal Conference and Incentive Travel Limited and Business Edge Solutions and Training Limited.

"Both businesses have made a positive contribution to the group during the period," the company said.

United Drug also confirmed that it had completed its acquisition of pharmaceutical contract packaging company Sharp Corporation in the United States for a total of $99 million following regulatory approval in the US.

"This statement is in line with expectations and shows a good level of resilience in the business as UK and Irish economic conditions deteriorated significantly in the period covered by this update," said Sam Farthing, an analyst with Merrion Stockbrokers in Dublin.