UDG Healthcare drops as it sells subsidiary
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Medical service provider UDG Healthcare (LON:UDG) saw its shares drop by 9.76% to 739.50p (as of 14:15 BST) despite results for the year to date being well ahead of last year. Management said that they expect full year earnings per share to be 18-21% higher than in 2017.
The company also announced that it would be disposing of its non-core Aquilant division for a €20.5 million cash consideration with a potential further €2.5 million in future performance payments. However, as a result of the deal UDG will book impairments of $44 million in its results.
CEO Brendan McAtamney commented: “The sale of Aquilant is consistent with the Group’s strategy to focus on its higher growth, higher margin international healthcare services businesses”.
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