Healthcare services group, United Drug, has reported a record performance in the first half of its financial year posting a 15 per cent rise in pretax profits to €25.3 million.
Announcing the figures yesterday, United Drug's chief executive Liam FitzGerald signalled that the company was on track to deliver a good result at the end of the year.
"The first six months of our 2006 year has seen a continuation of our track record of delivering double digit profit and earnings growth" he said.
United Drug recorded a 12 per cent increase in revenue to €707 million.
Earnings per share rose by 14 per cent to 9.33 cent per share while the interim dividend increased by 14 per cent to 1.71 cent.
The company's shares rose following the good numbers with analysts preparing to upgrade their earnings forecasts. United Drug shares gained 5 cent to end at €3.95.
The company said it had continued to build on its market leading positions in growing healthcare markets with strong contributions from its four divisions, Pharma Wholesale, Contract Distribution Outsourcing, Medical & Scientific and Contract Sales Outsourcing, in the UK and Ireland.
Mr FitzGerald said that the continuing implementation of its strategy over the last six months has positioned the healthcare group well for this year and for the years ahead.
The three UK acquisitions of TD Packaging, In2Focus Sales Development Services and Presearch, completed in the second half of 2005, have been brought fully within the group and are adding value, according to Mr FitzGerald.
During the half year period United Drug has completed the integration of a number of its businesses into enlarged facilities designed to boost growth in the future.
Its Pharma Wholesale business has been winning new customers from the growing Irish pharmaceutical market where it said more independent retail pharmacists have been moving their business to United Drug.
The healthcare services company is awaiting the Irish Government's review of the Drug Pricing Agreement with a new agreement covering the pricing and reimbursement of medicines due to be in place before the end of the year.
Mr FitzGerald said it has put plans in place to deal with possible outcomes of these negotiations.
