DAVY VIEW

UDG’s Q3 trading update highlights a key attraction of the investment thesis — high structural growth in areas where management has been deploying the vast majority of capital; Ashfield Comms and Advisory is delivering faster-than-expected profit growth, both organically and through recent M&A. Sharp US is also accelerating its ramp up on the back of greater biotech/speciality demand. The latter requires increased investment in headcount, which will temporarily hold back profit growth in H2 2019. Group guidance for 2019 has been maintained and we have made no material changes to our underlying group growth assumptions. Recent sterling weakness prompts minor revisions to our 2019 and 2020 EPS (c.1-1.5%). Call is at 08:00.