Acquisition injects profit stimulant into United Drug

The absorption of pharmaceutical distribution company Dublin Drug into the commercial bloodstream of United Drug has given an…

The absorption of pharmaceutical distribution company Dublin Drug into the commercial bloodstream of United Drug has given an agreeable buzz to group half year earnings and profits. With Dublin Drug making a five-month contribution, interim profits were driven up 35 per cent to £4.4 million with turnover improving 40 per cent to £201 million assisted by a strong performance by the wholesale division. The trading environment was favourable, the group improved its market share and a lower tax charge enabled net profits to climb 49 per cent to £3.17 million.

Chairman Martin Rafferty says that the group has made a good start to the second half of the financial year with every confidence that "another successful year " was in prospect.

With nil borrowing the balance sheet is healthy, the group able to finance up to £30 million on the right acquisition should a suitable opportunity present itself. Earnings per share improved 25 per cent and interim dividend rises 10 per cent to 3.3p per share.