13th Oct 2014 08:18
LONDON (Alliance News) - Health services company Synergy Health PLC Monday said revenue was up 2.8% on the year in the first of its current financial year, although it booked a GBP8.8 million revenue hit from adverse currency movements.
In a trading update, the company said revenue in the six months to September 28 was GBP197.6 million, up from GBP192.1 million in the equivalent period a year earlier, although underlying revenue, which excludes currency movements, was up 7.4%, thanks to a particularly strong performance by its Applied Sterilisation Technologies business.
On a constant currency basis, underlying revenue was up 17.5% to GBP71.0 million in Applied Sterilisation Technologies, up 5.8% to GBP86.1 million in its Hospital Sterilisation Services business, but down 2.1% to GBP49.3 million in Healthcare Solutions.
It said it won GBP6 million a year of new hospital sterilisation services contracts in the half, and a further GBP2 million a year is at preferred bidder stage. In September, it launched a new initiative in the UK to lower operating costs in the hospital sterilisation business with the use of new innovative software and RFID technology. The initial reception has been positive, generating new leads and opportunities worth more than GBP10 million a year at this early stage, it said.
It added that net debt rose to about GBP172 million on September 28, from GBP147.6 million on March 30, principally as a result of the Bioster Group acquisition which completed in May.
Synergy Health shares were up 30.3% at 1,811.00 pence Monday morning, the best-performing stock on the FTSE 250.
By Steve McGrath; [email protected]; @stevemcgrath1
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