UDG Healthcare plc
Preliminary Report 2020
Strong and resilient FY20 performance, trading ahead of guidance
24 November 2020: UDG Healthcare plc (“UDG Healthcare” or “Group”), a leading international healthcare services provider, announces its results for the year ended 30 September 2020, in which the Group delivered a strong and resilient trading performance despite the challenges presented by COVID-19.
- Adjusted diluted earnings per share (EPS) of 47.71c (FY19’s EPS of 47.31c), ahead of EPS guidance of 43c to 45c announced in August 2020
- Group net revenue increased by 5%*
- Group adjusted operating profit increased by 7%*, driven by:
- An exceptionally strong performance from Sharp with adjusted operating profit increasing by 34%*
- A resilient performance from Ashfield with adjusted operating profit decreasing by 4%*
- Adjusted Group net operating margins increased from 14.0% to 14.3%
- Continued strong cash flow performance with a free cash flow conversion rate of 111%
- Robust balance sheet and liquidity position with net debt to EBITDA of 0.1x
- ROCE increased from 13.1% in FY19 to 13.5% in FY20
- Proposed 1.6% increase in final dividend to 12.54 $ cent per share, giving a full year dividend increase of 1.2% to 17.00 $ cent per share.
*on a constant currency basis
Chief Executive’s comment
Chief Executive Officer, Brendan McAtamney commented:
“We are pleased to report a strong and resilient trading performance for FY20, which was ahead of our EPS guidance. This was driven by exceptionally strong growth in Sharp, in particular for serialised biotech and specialty packaging. Despite some parts of Ashfield being impacted by COVID-19, we adapted rapidly to support clients virtually and overall Ashfield performed in line with expectations.
I’d like to thank all of our people for their continued resilience, adaptability and commitment throughout the pandemic. They have been instrumental in supporting our clients during this challenging time, enabling them to deliver for their patients.
UDG Healthcare is a strong and well diversified business, underpinned by excellent long-term market fundamentals as evidenced by our strong financial performance in FY20. We have a robust financial position and will continue to leverage our investments in people, technology and infrastructure to remain well positioned for continued future growth.”
Financial Results – year ending 30 September 2020
|Profit before tax||108.2||74.3||46|
per share ("EPS") (cent)
|Dividend per share (cent)||17.00||16.80||1|
|30 September 2020||30 September 2019|
|Net debt ($'m)||16.2||80.5|
|Net debt ($’m) including IFRS16 lease liabilities||119.9||n/a|
|Net debt/annualised EBITDA (times)||0.1||0.4|
|Alternative performance measures1||30 September 2020
|30 September 2019
|Adjusted operating profit||165.3||154.8||7||7|
|Adjusted profit before tax||152.0||146.7||4||4|
|Adjusted diluted earnings per share ("EPS") (cent)||47.71||47.31||1||1|
Management will host a presentation for analysts and investors to discuss the company’s full year results and provide an update on each of the Group’s divisions, followed by a Q&A.
Results presentation will be available to watch on demand from 7.00am, via a pre-recorded video webcast https://secure.emincote.com/client/udghealthcare/udg006
A live Q&A will commence at 9.00am, available via audio webcast and conference call.
Q&A conference call registration link: https://secure.emincote.com/client/udghealthcare/udg005/vip_connect
Q&A webcast registration link: https://secure.emincote.com/client/udghealthcare/udg005
Please note: If you wish to ask a question during the live Q&A at 9.00am, please dial into the conference call, as participants on the webcast will be in listen-only mode and therefore unable to ask questions.
1. Alternative performance measures (“APMs) are financial measurements that are not required under International Financial Reporting Standards (IFRS) which represent the generally accepted accounting principles (GAAP) under which the Group reports. APMs are presented to provide readers with additional financial information that is regularly reviewed by management. The Group believes that the presentation of these non-IFRS measurements provides useful supplemental information which, when viewed in conjunction with IFRS financial information, provides stakeholders with a more meaningful understanding of the underlying financial and operating performance of the Group and its divisions. APMs should not be considered in isolation or as a substitute for an analysis of results as reported under IFRS. See “Additional Information” on page 31 for definitions and reconciliations to the closest respective equivalent GAAP measure.