United Drug has reported a 23 per cent rise in pre-tax profits for the six months to March 31st and has also promised shareholders it will carry out a seven-for-one share split
Group turnover was up by 18 per cent to €561 million, while pre-tax profits rose to €16 million from €14.4 million in the same period in 2002. But this year's figures fall to €14.9 million once an exceptional charge of €1.1 million relating to redundancy costs at its British business Ventiv is taken into account.
The retained profit for the period was €8.1 million, compared to €7.9 million in the previous six months. The company has agreed to pay eight cents dividend per share, up from one cent.
Chairman Mr Martin Rafferty said the firm's double-digit share price was not attractive to private investors. He said: "It is therefore proposed to recommend to shareholders that we split the shares. This will have the effect of changing the nominal value of United Drug shares from 32 cent to five cent." He said full details of the proposal would be sent to shareholders in June and an extraordinary meeting would be convened soon after.
"The proposal will not affect the underlying interest of shareholders in the earnings or net assets of the company or the rights attaching to the shares," he said. Mr Rafferty said each of the firm's four divisions - pharma, contract distribution, medical and scientific, and contract sales outsourcing - continued to perform well, while gains in market share, higher margins and tighter cost control were main factors behind higher profits.
Recent acquisitions in Britain have increased debt levels, with net debt rising to €57.5 million from €19.5 million in the comparable period in 2002. Turnover and profits figures for the recently acquired British acquisitions were not provided.
"This entity has been fully integrated into the operations of Ashfield Healthcare UK and it is not possible to separately identify its trading results since acquisition."
