Q3 Interim Management
Statement
Wednesday 10 February 2010
Synergy (SYR.L), a leading provider of specialist outsourced
support services to health related markets in the UK, the Rest of
Europe, Asia and South Africa, is pleased to provide an update on
its progress since 27 September 2009.
Overall trading has continued in line with the first half of the
year and we remain on track to meet the Board’s expectations for
the full year. Revenues in the third quarter increased 8.0% on the
same period last year to £73.3 million (Q3 2008/9: £67.9.million).
Revenues for the nine months to 27 December 2009 increased 7.6% to
£216 million (YTD 2008/9: £201 million). Revenues in the operating
regions were as follows:
| |
Sales Q3 09 |
Sales Q3 08 |
Growth |
| United Kingdom |
£39.1
million |
£38.4
million |
2.6% |
| Rest of Europe |
£32.0
million |
£27.5
million |
16.0% |
| Asia and South Africa |
£2.2
million |
£2.0
million |
14.7% |
Operating margins were up 1.5% on the same period last year and
0.9% year to date. All of the businesses, with the exception of the
UK laboratory business and the non-linen component of Healthcare
Solutions, are operating in line with expectations. The laboratory
business is expected to be largely corrected by the year end whilst
a new MD at Healthcare Solutions is implementing a strategy that
should see margin progression in the coming financial year.
Net debt has reduced further in the period to £140 million from
£148 million on 27 September 2009, and the group continues to
operate very comfortably within its agreed covenants.
Having successfully restored margins and improved cash
generation the Group is now putting in place a strategy to lift
growth rates across all three regions including China, where
progress opening up the decontamination and sterilisation markets
continues. We are pleased to report that our new Decontamination
facility in Knowsley in the UK opened satisfactorily at the end of
January and that we will achieve financial close with the
University Hospitals of Leicester NHS Trust that will see a new
facility open in a year’s time.
We look forward to reporting further progress at the end of the
next quarter on the 14th of April and our preliminary results on
the 3rd of June 2010.
For Further Information:
| Synergy Health plc |
|
Dr Richard Steeves, Chief Executive
Ivan Jacques, Finance Director
|
Tel: +44 (0) 1793 891 891
|
| Morgan Stanley |
|
Peter Moorhouse
|
Tel: +44 (0) 20 7677 2395
|
| Investec |
|
Patrick Robb
|
Tel: +44 (0) 20 7597 5970
|
| Financial Dynamics |
|
Ben Brewerton
|
Tel: +44 (0) 20 7831 3113
|