Shaping a platform for strategic growth
Our values guide us in delivering on our mission to improve the lives of patients around the world every day.
Our strategy is to capitalise on the increasing trend among pharmaceutical, biotech and healthcare companies to outsource specialist and non-core activities on an international basis.
We have defined a clear set of strategic pillars in order to deliver on our strategy. To support this, we need to ensure that we continue to develop leading capabilities to harness UDG Healthcare’s global growth potential.
We consistently improve our operating efficiencies across the Group. We measure this through benchmarking our commercial and financial performance against specific KPIs.
We are building capability across our business and focusing on the three pillars of our strategy to help drive profitable growth. We monitor our businesses against six financial and three non-financial KPIs. Our KPIs support the execution of our strategy and are important drivers of improved business performance over the short, medium and long term.
Progress in 2018: Continued improvement across KPIs.
We aim to continually increase margins to drive improved profitability. Improving productivity and increasing operational efficiencies are a key focus of our organic growth strategy to drive the expansion of business unit, divisional and Group margins.
Progress in 2018: Net margins increased to 13.1%.
We have a strong track record of efficient capital allocation and we deploy capital in areas where we identify the greatest strategic benefit and shareholder returns. We continue to invest in scalable infrastructure to support the delivery of sustainable future growth, ensuring there is a robust infrastructure in place to manage the existing business and to integrate future acquisitions.
Progress in 2018: Sharp Clinical successfully progressed the transfer of operations to newly invested facilities in the US and UK.
Net operating margin: 13.1%
Return on capital employed: 12.7%
We are a people-based business operating in dynamic healthcare markets that are highly regulated and demand high quality and compliance standards. We are building our culture and transforming our business by living our values. We are focused on attracting, developing and retaining the best talent so that we support and deliver on our clients’ ambitions.
Our people are core to our service delivery; their development is vital to our success. We continuously develop our employees to ensure we have the right people, in the right place, with the right skills.
Progress in 2018: There has been a continued focus on key talent management practices including leadership and management development, succession planning and performance management.
We enable our clients to outsource with confidence by exceeding our clients expectations and providing the highest quality standards possible. We are consistently focused on regulatory compliance and good environmental
Progress in 2018: ComplianceCentre resource has been established to manage all quality and compliance training.
Our values influence our ability to attract and retain customers, employees, investors and suppliers and are key to our long term sustainability. We continue to work hard to integrate our values in our business processes and are mindful of them in the decisions we make.
Progress in 2018: We received the results of our first global engagement survey which was designed to understand how we embed our values in our culture. All businesses are addressing any action areas identified from the feedback.
Response rate to the global engagement survey: 78%
Sustainable engagement score: 80%
We believe scale in major markets, international reach and reputation are key to business development success. We aim to be a leading operator in each of our priority markets and to continue to expand our market positions.
We will continue to grow our activities organically across our priority markets of the US, Europe and Japan. Our organic service development and expansion will be enhanced by strategic acquisitions of complementary services and capabilities. The Group has a track record of successfully acquiring and integrating businesses which strengthen our market positions and deliver returns on capital in excess of 15%.
Progress in 2018: Operating profits grew by 14% and North America accounted for 54% of Group revenues.
Working in partnership with our clients and providing bespoke solutions is fundamental to our business. By understanding our clients we become an essential partner, helping them to succeed in a dynamic and increasingly complex operating environment.
Progress in 2018: Launched the Ashfield Solution, an agile, multi-channel commercial model.
We aim to improve, transform and grow our service offering to capitalise fully on growth opportunities and shifting market trends. This allows us to differentiate our service offering and leverage our market positions by enhancing the range of capabilities we can offer to our clients.
Progress in 2018: Completed the acquisitions of Create NYC and SmartAnalyst
Earnings per share: 45.94c
North American revenues: 54%