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Synergy Healthcare plc (SYR): Q1 Interim Management Statement



7/14/2009 11:49:37 AM

Synergy (SYR.L), a leading provider of outsourced healthcare support services in the UK, Continental Europe, Asia and South Africa, is pleased to provide an update on its progress since 29 March 2009.

Overall trading has been in line with the Board’s expectations. Sales in the first quarter increased 9.7% on the same period last year to £72.6 million (Q1 2007/8: £66.2 million). UK sales reflect the planned exit from low margin, non core business lines which masks the continued growth in Decontamination services. Sales in the operating regions were as follows:

Sales Q1 09 Sales Q1 08 Growth

United Kingdom £38.8 million £38.4 million 1.0%

Rest of Europe £31.6 million £25.9 million 22.2%

Asia and South Africa £2.2 million £1.8 million 17.7%

As reported in June, Synergy continues to see improvements in its net operating margins and remains on course to have these fully restored by the autumn of this year.

Net debt reduced in the quarter by £17 million to £153 million (28 March 2009: £170 million) reflecting a net generation of free cash of £10 million together with favourable translation of the Euro and Chinese Yuan debt into Sterling. The debt position remains comfortably within covenants agreed with the Company’s syndicate of banks.

Richard Steeves, Chief Executive of Synergy, said: “The business has had a very positive start to the year and, with a number of new decontamination contracts still to be implemented together with additional sales to be generated from the recent opening of our new sterilisation facilities in Ireland and China, we are pleased to confirm that the business is on track for a successful year.”

Read at BioSpace.com


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