United Drug: Euro to stay reporting currency

United Drug has announced it intends to keep the euro as its reporting currency, despite its shares now being listed in London.

The Dublin-headquartered healthcare services group switched from the Iseq to the London Stock Exchange last October. With almost three-quarters of the group’s annual earnings now generated outside of Ireland, management viewed the move as a “natural progression” and one which would help the business attract a wider international investor audience.

In its latest trading update, issued yesterday, United’s management said it had conducted a review to consider if the group’s results should be reported in sterling or euro.

“Following this review, the group has decided that, based on existing and future geographic profit flows, it will continue to use the euro as its reporting currency,” it said.

The group is on the cusp of another change in its identity, with shareholders set to vote tomorrow on its plans to change the group name to UDG Healthcare, a move aimed at providing a more concise umbrella for the company’s growing number of subsidiaries.

In yesterday’s update, United said that trading in its third quarter — the three months to the end of June — was “strong“, with revenues and profits up on a year-on-year basis.

Management has maintained its previous guidance for its full year, to the end of September, saying it still expects adjusted diluted earnings per share, on a constant currency basis, to be ahead by between 5% and 8% and to deliver “another strong cash flow performance in the year”.