Uniphar flags positive first-half performance

30th Jul 2024 12:22

(Sharecast News) - Healthcare services business Uniphar announced a positive unaudited trading update for the six months ended 30 June on Tuesday.

The AIM-traded firm reported performance in line with expectations at both gross profit and EBITDA levels, achieving around 7% organic gross profit growth and maintaining normalised free cash flow conversion in line with medium-term guidance.

It said Uniphar's divisions showed varied but strong performance, with the pharma division delivering strong double-digit organic gross profit growth during the first half, on track to maintain that growth rate for the full year.

The medtech division achieved low single-digit organic gross profit growth against a strong prior year, with expectations of high single-digit growth for the full year remaining unchanged.

Its supply chain and retail division also posted low single-digit organic gross profit growth for the half-year, with full-year growth expectations consistent with this trend.

The group maintained a strong liquidity position, ending June with lower-than-projected net debt.

Uniphar said it entered the second half with strong trading momentum, and remained confident in meeting current year earnings per share expectations.

Mergers and acquisitions continued to be a key element of Uniphar's growth strategy, with the group committed to a disciplined approach to capital allocation, actively managing a pipeline of acquisition opportunities to further enhance growth potential.

"Uniphar has had a great first half, achieving significant organic gross profit growth," said group chief executive officer Ger Rabbette.

"We are well-positioned to continue this progress into the second half and meet our growth objectives for each of our three divisions for the full year.

"Our focus remains on reaching our target of €200m EBITDA in the medium term."

Uniphar said it expected to publish its interim results for the six months ended 30 June on 3 September.

At 1310 BST, shares in Uniphar were up 2.91% at 212p.

Reporting by Josh White for Sharecast.com.