Healthcare outsourcing group Synergy says that trading has been in line with expectations since the half-year point but it will incur a one-off charge after a "re-organisation" in response to macroeconomic risks.
Reported revenues for the nine months to January 1st are 8.1% higher at £232.5m, compared with £215.1m the year before, a slight slowdown from the 11.9% growth seen in the first half.
Underlying revenue rose 11.5% to £229.5m. On a like-for-like (LFL) basis however - excluding the benefit of an extra week of trading - the organic underlying revenue would have increased by 7.4%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The group is now undergoing a 'European Cost Reduction Programme', which will be focused on maximising cost efficiencies. "Whilst the operating environment in Europe continues to be relatively stable, the macroeconomic risks are perceived to have increased," the statement said.
Synergy has recently began a "re-organisation" which will reduce the cost base by £2m a year, but has led to redundancies which will expensed in the period. The firm has also closed four facilities and consolidated processing and manufacturing into other facilities, while selling off a surplus property.
As a result of this, there will be a one-off exceptional charge of £2.3m realised in the result of the financial year ending April 1st 2012.
Operationally, the group has seen revenue growth in UK & Ireland increase slightly after the opening of a new Hospital Sterilisation Service facility with the North Lincolnshire & Goole Trust in November.
Europe is more of a mixed bag though: Applied Sterilisation Technology revenues were up 27.8% ; while the Dutch linen business has seen a fall of 4.2%. Meanwhile, its smaller divisions in Asia & Africa and the Americas has seen strong revenue growth.
BC
-
FTSE 100 hits record highs – why is it rising and will we see more gains?Advice UK equities have been described as unloved for a long time but as the FTSE 100 hits new highs, we explain if now is the time to buy British.
-
How to invest in copperIt may be time to invest in copper as the red metal appears poised for a big jump. Dominic Frisby looks at what should investors should buy
