Synergy Health in good condition

Synergy Health is on track to meet expectations for the full year after a strong half year which saw both revenue and profits rise.

This was the upbeat message from the provider of sterilisation services to hospitals as it presented its interim results and the figures appear to support this.

Revenues for the six months ending September 30th were up 10.5% at £171.6m (2011: £155.3m), with pre-tax profits up 9.8% at £18.2m (2011: £16.6m).

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Operating cashflow was up 18.9% at £43.3m (2011: £26.4m) and its interim dividend has increased 15.8% to 7.9p from 6.82p the same period the previous year.

Net debt increased by £6.8m to £180.3m, taking into account the partial funding of the SRI Surgical Express acquisition, payment of deferred consideration of £10.5m to the vendors of BeamOne, and net capital expenditure of £23.6m for new facilities in Costa Rica and France (2011: £27.6m).

Richard Steeves, Chief Executive of Synergy Health, said: "Despite the ongoing economic challenges, particularly in Europe, I am very pleased with the resilience of the group, and the progress that it continues to make.

"Our strategy of bringing forward investment in the United States has been well timed and will support our global growth objectives. The acquisition of SRI has given Synergy a real presence and management depth, opening up a number of new business development opportunities."

The company completed the acquisition of SRI in July of this year and said the integration and turnaround of the business is going well and is ahead of plan.

The firm said good cost control help to lift group operating margins by 0.6%.

It saw a solid first half with strong revenue growth in Asia & Africa and the Americas offsetting weaker growth in Europe & Middle East and UK & Ireland.

Consensus estimates for the full year ending March 31st 2013 are for pre-tax profits of £47.18m on revenues of £386.31m.

CM