Uniphar plc (LON: UPR), the Dublin-based healthcare services group spanning pharma sourcing, medical device distribution and Irish pharmacy retail, reported double-digit earnings growth across all three divisions today, but the standout figure was a sharp rise in debt used to fund that expansion.
Shares last closed at 355p on Monday, within a 52-week range of 293.05p to 428p, having fallen from a June peak near 428p. Revenue for the six months to 30 June rose 7.2% to €1,591.9m, from €1,485.5m a year earlier, while adjusted earnings per share grew 11.2% to 10.9 cent.
Beneath the headline growth, net bank debt rose 61% to €275.7m from €171.1m at December, pushing leverage, net debt measured against annual earnings, from 1.6 times to 2.4 times. Management attributed this to the expected unwind of prior-year working capital benefits in the Pharma division alongside continued strategic capital spending.
That unwind turned free cash flow conversion, the share of earnings actually converted into cash, negative at 77.1%, against a positive 99.1% at December, with an operating cash outflow of €53.0m. Uniphar has also pushed back the opening of its new Irish distribution facility by a year to February 2027, to allow extra testing and cut risk during the busy fourth quarter.
Chief executive Ger Rabbette said: “Uniphar has delivered a strong first half, with continued organic gross profit growth across the Group. Trading continues to be robust, and the business is developing in line with our expectations. We expect to sustain this progress into the second half and remain on track to meet our growth objectives for each of our three divisions for the full year. We also remain confident in our ability to reach our €200m EBITDA target by 2028, with at least 80% of growth expected to be organic.”
All three divisions delivered organic gross profit growth: Pharma up 7.0%, Medtech up 9.0% and Supply Chain & Retail up 5.6%. The board declared an interim dividend of €0.0074 per share, up 4.2% on last year’s €0.0071, payable on 9 October.