Uniphar remain confident to deliver growth across 2020

Uniphar PLC (LON:UPR) have said on Tuesday that they are confident to deliver growth in 2020, following a strong performance in the recent year of trading.

The firm, who works in providing healthcare services said that it has performed well in 2019, following organic gross profit growth of 7% as earnings before interest, tax, depreciation and amortisation remained in line with forecasts.

The firm said that it is continuing to build on its growth strategy to meet the needs of  speciality manufacturers through the provision of higher value services.

For 2020, the firm said “Looking forward into 2020, Uniphar is well positioned to deliver continued organic growth across all divisions, in line with its medium-term outlook, with the additional benefit of the full year impact of recent bolt-on acquisitions.”

Ger Rabbette, Group Chief Executive commented:

Our trading update reflects a strong performance for 2019 in line with Group expectations and positions us to deliver our plan for 2020 consistent with our medium term outlook. We are delivering on our committed strategy in our growth divisions being:

1.   Growing a pan European platform in Commercial & Clinical where we are now present in the Nordics as well as Ireland, UK and the Benelux; and

2.   Developing a global platform in our Product Access division which is now in place following the acquisition of Durbin

Our Product Access and Commercial & Clinical divisions continue to be the key growth engines for the Group particularly in the UK, Benelux and Nordics markets while Supply Chain & Retail saw strong volume and gross profit growth in Ireland.

We are well positioned going into 2020 for the next stage of our planned development in delivering our five-year strategy of doubling EBITDA. Additionally, we look forward to declaring a dividend for our shareholders.”

Uniphar’s two new acquisitions

In November, Uniphar said that they had acquired two new firms as part of their growth and development strategy.

The two names acquired were Nordic based EPS Group and Irish firm M3 Medical.

The total potential cost for EPS Group and M3 medical will be approximately €40 million, and they payment will be spread over four years.

The deal will be financed from the funds raised from the initial public offering in July, and coupled with a combined placing shortly after was valued at €139 million.

On a pro-forma basis, for 2019, these acquisitions in aggregate are expected to deliver revenue of about €22 million.

Both the EPS Group and M3 Medical will be integrated into the Commercial & Clinical Medtech division of Uniphar.

Shares in Uniphar trade at €1 (-1.17%). 4/2/20 12:36BST.

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