Synergy Health on target as headwinds persist

Hospital sterilisation services firm Synergy Health said underlying organic growth has been challenging amid the slowdown in the UK, economic pressures in Europe and currency effects but trading in the first half of the year remains on track.

The Swindon, UK-based provider of outsourced sterilisation services to the medical device market and healthcare sector said margins have continued to improve, resulting in solid earnings growth.

Synergy, which provides decontamination services for reusable medical & surgical equipment and hospital linen management throughout the UK and Netherlands, added that the integration of SRI in the US is progressing positively.

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It said SRI is operating profitably after it was de-listed from Nasdaq and trading has improved over the last 10 weeks following the introduction of Synergy's new strategy to rebuild margin and growth.

However the group noted that at the time of the acquisition it was expecting operating margins to reach 10% within 18 months, but it now expects to achieve this by March 31st 2013.

CJ