Uniphar posts 41% increase in pretax profit

Uniphar, the pharmaceutical distribution group, has posted a 41 per cent increase in pretax profits for last year.

The company, which is owned by more than 500 independent pharmacists, delivered profits of €15.6 million as turnover climbed by 21 per cent to €618 million.

Jim Canavan, chief executive of Uniphar, highlighted the integration of acquisitions and group efficiencies as having driven the 2005 growth. He said the firm was "confident" in its prospects for this year, with business performing "very well" in the first quarter.

Earnings per share at the firm increased by 40 per cent to 52.9 cent last year, following a four for one share split during the year. The firm has declared a dividend of six cent per share, up 14 per cent on 2004. This would mean a payout of roughly €300,000 for Uniphar's largest shareholders.

Mr Canavan estimated that Uniphar now holds about 33 per cent of the Republic's pharmaceutical wholesaling market. This would mark flat growth on 2004, with Mr Canavan denying that the firm had lost market share to its larger rival, United Drug.

Uniphar is also active in the Independent Pharmacy Ownership Scheme (Ipos), which assists pharmacists in setting up their own pharmacy outlet. In return, the pharmacists buy their stock from Uniphar.

The scheme now has more than 140 pharmacies on its books, a number which is still below Uniphar's early targets.

Mr Canavan said the rate of acquisition of pharmacies had slowed because of the "premium" prices being paid by competitors. The firm is still "very pleased" with progress, he added.

As part of a plan to diversify, Uniphar is close to starting up its first operation in Britain. Mr Canavan declined to give details of this yesterday, but he said it should be operational by June.

Shareholders have also been told that the firm is moving premises following a rezoning of its 8.5-acre site on the Belgard Road in Dublin's Tallaght suburb.

Mr Canavan acknowledged that the old site would be sold over the next two years, with at least some of the proceeds to be used for the development of a new facility.