United Drug has said it continued to experience good trading conditions in all of its trading divisions in the first quarter of its financial year. In a trading update issued yesterday and covering the three-month period from October 1st, 2007, it said overall group performance was "well ahead of the corresponding period in the prior year, in line with our expectations". Colm Keenareports.

The statement was issued in compliance with the EU's transparency directive, which obliges certain listed companies to provide periodic updates. The company's share price ended the day up 3 cent, at €3.89.

"United Drug remains positive about the fundamentals of our core markets and its position within those markets. The group continues to see opportunities to expand our businesses, both organically and through acquisition, and has a strong balance sheet to support its growth objectives," the statement said.

The company noted its acquisition during the period of Alliance Healthcare in Pennsylvania and Procon in Yorkshire. "Both these acquisitions allow United Drug to add to the range of value-added services we can provide for our pharmaceutical clients."

It said its medical and scientific division had significantly increased its presence in the Irish market through the acquisition of JVA Analytical.

Responding to the statement, Davy Stockbrokers said it was not altering its forecasts for the company of 10 per cent revenue growth to just over €1.7 billion and 12 per cent earnings per share growth to €0.258.

Goodbody also stuck with its forecasts of 11 per cent growth in adjusted earnings per share for 2008, to 25.5 cent, from a 7.3 per cent increase in revenue to €1.7 billion.