2nd Jun 2015 06:48
LONDON (Alliance News) - Healthcare services provider Synergy Health PLC Tuesday posted a rise in pretax profit for its recently ended financial year, and said its current financial year has started well.
Synergy's results come after the US Federal Trade Commission said last week it intends to block STERIS Corp's proposed USD1.9 billion cash and share takeover of Synergy, citing concerns about lessening competition it the market for contract radiation sterilisation services. The two companies have said they intend to contest the FTC's attempt to block the acquisition.
For the year to March 29 Synergy posted a pretax profit of GBP43.6 million, up from GBP42.9 million a year before, as a 7.5% rise in revenue to GBP408.8 million from GBP380.5 million was offset by higher administrative expenses, GBP8.6 million amortisation of acquired intangibles and GBP5.8 million in exceptional and acquisition related costs.
Stripping out amortisation and exceptional costs pretax profit rose to GBP58.0 million from GBP54.7 million. The company's results were also hit by the strength of sterling, and at constant currency revenue growth was 10.8%.
FTSE 250-listed Synergy said that whilst there has been "some distraction" caused by the proposed takeover from STERIS, which meant that it has had to redirect resources away from other acquisition activity and some potential transactions have been delayed or postponed, its organic growth has been improving and it delivered strong growth in its Applied Sterilisation Technology and Laboratory Services business.
Synergy has opted not to pay any dividends this year, as a result of the proposed takeover by STERIS. It said its will continue to keep its dividend policy under review, and has agreed with STERIS that it would be allowed to declare a special dividend of 15.80 pence per share.
The company reiterated that it believes the takeover by STERIS is "procompetitive and in the best interests of all constituents of the two companies, including customers."
Synergy said its new financial year has started well, and it is well placed to sustain its growth over the medium and long term.
"We have made good progress this year on our objectives. In the near term we will continue to focus on investing to deliver our strategy. I am personally very excited about the opportunities at hand, and look forward to seeing the continued growth of this business," said Chief Executive Richard Steeves in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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