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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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UDG Healthcare - Operating margin at Sharp jumps from 12.9% to 15.5%

January 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • UDG
  • Price:
  • 765p
Shares in UDG Healthcare went over £8 after it announced full year results for the year ended September materially ahead of expectations with adjusted operating profit rising 7% to US$165.3m (9% above consensus forecasts) and eps increasing 1% to 47.7 cents, against guidance of 43-45 cents. Given Covid blighted over half the period, this was hugely resilient, while an impressive 111% cash conversion  helped by one-off working capital benefits (c. US$40m) and lower capex (US$12m) meant net debt fell sharply from US$80.5m to just US$16.2m (0.1x net debt / EBITDA).Sharp, which packages and labels pharmaceutical products such as cartons and blister packs, was the stand-out with sales up 11% to US$387.7m and operating profit ...

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