United Drug's chairman, Mr Martin Rafferty, has signalled another good year for the company.

Addressing shareholders at the firm's annual general meeting in Dublin yesterday, Mr Rafferty said the group had made an excellent start to 2001 and was confident of another strong out-turn. United Drug achieved 27 per cent growth in earnings per share last year with pre-tax profits up to €18.6 million (£14.6 million).

This brings compound earnings growth over the past five years to 19 per cent a year.

United Drug has developed substantial businesses in contract distribution and contract sales outsourcing.

In the first four months of this financial year Mr Rafferty said that each of the three divisions, pharma wholesaling, contract distribution and contact sales outsourcing had made a very good start.

Profits in these divisions is well ahead of the same period last year.

In the Republic, the company is particularly pleased with the performances of United Drug Wholesale and United Drug Distributors.

In the UK, its joint venture UniDrug is also performing well with profits up on last year.

On the back of strong growth dividends per share increased by 15 per cent to €18.25.