Healthcare services plc Uniphar has reported strong results for 2021, though the dividend payout remains very low.
Turnover advanced 6.5% to €1.94bn and gross profit improved by 26%, with the profit margin widening from 11.9% to 14.1%.
Uniphar’s operating profit for 2021 came in at €45m compared with €40m the year before, an increase of 13%. Pre-tax profit surged to €56m from €34m, due to €20m in accounting provisions.
Net cashflow from operating activities was €52m compared with €66m in 2020, and that was sufficient to cover €50m in investing activities. EBITDA surged 30% year-on-year to €86m
Uniphar’s relentless focus on expansion by acquisition since the company’s IPO means that very little cash is put aside for dividends.
In Association with
The total dividend payout for 2021 will cost the company €4.4m, or 2.7c per share. “The board remains committed to a progressive dividend policy,” a company statement assured shareholders.
The Uniphar stock was one of the best performers on Euronext Dublin through 2021 but has gone off the boil since the start of 2022.
Investors have marked down the share from €5 to the €3.40 level. With earnings per share coming in at 16.2c, the current P/E rating is x21 times.
Uniphar’s end December 2021 balance sheet had total liabilities of €690m. Net worth was €250m, including €450m in goodwill and intangibles.
During 2021, the group completed four acquisitions and announced a fifth, the acquisition of the Navi Group, which is subject to approval by the CCPC:
Chief executive Ger Rabbette commented: “The group performed strongly throughout 2021, with all divisions achieving gross profit growth in line with or ahead of divisional guidance.
“We will continue to apply a disciplined approach to capital deployment both organically and through M&A where such investment accelerates our strategic plans and delivers a Return on Capital Employed within or above our targeted range of 12% - 15% within three years.
“We are confident of delivering on expectations throughout 2022 and beyond and remain firmly on track to achieve our strategic objective of doubling 2018 proforma EBITDA within five years of IPO.”
