United Drug profits in line with expectations

Healthcare group United Drug said profits for the year to end September are expected to be ahead of last year's earnings on a constant currency basis, in line with expectations.

In a trading statement issued today ahead of results to be reported on November 18, the company

said it had experienced very buoyant trading in some parts and challenging trading conditions in other parts.

However a 15% fall in the value of sterling relative to the euro would result in reported profits for the year being lower than those reported in the prior year, the company said.

The company said its restructuring and cost reduction programme was expected to achieve annual savings of €9m-€10m for a once-off cost this year of around €14m.

"United Drug remains positive about the growth opportunities in its business and has a strong balance sheet and very good internally generated cash flows to support its growth objectives," the company said in its trading statement.