23rd Jul 2014 08:18
LONDON (Alliance News) - Synergy Health PLC said Wednesday that it remains committed to achieving its underlying growth expectations for the full year, although it warned that the strengthening of sterling may hit its results.
The healthcare services company said it had seen revenues rise to GBP99.1 million in the first quarter to June 29 on a constant currency basis from GBP96.6 million a year before. At actual currency rates, revenues declined 1.1% to GBP95.6 million.
Some 60% of the company's revenue is denominated in currencies other than sterling, it said, and as a result it is hurt by the appreciation of sterling.
Synergy Health remained positive in its outlook for the 2014/15 financial year, however, citing its progress with new contracts and sentiment in its core service lines and markets.
Revenue in its applied sterilisation technologies rose 14% to GBP34.3 million at constant currency from GBP30.2 million, as contract wins offset a dip in revenue caused by a fire in its Malaysian gamma facility.
In Synergy Health's hospital sterilisation services business revenue declined to GBP40.2 million at constant currency from GBP40.7 million, due to lower patient levels in the UK and US, and its exit from its non-core legacy product distribution in the US.
In Healthcare solutions, revenues declined to GBP24.6 million at constant currency from GBP25.7 million, as its Netherlands business continued to be damped by government austerity measures, although this was partially offset by a good performance in its UK business.
Synergy Health said it had started the year with a strategy to lift its growth rates over the next year and a half. Its applied sterilisation technologies are already on target, it said.
With the launch of a new hospital sterilisation service in the UK, contract wins in the US and a growing bid book underpins Synergy Health's expectations that these services will growth in its target range from August onwards.
Shares in Synergy Health were trading down 0.6% at 1,357.56 pence Wednesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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