30th Oct 2015 10:55
LONDON (Alliance News) - Synergy Health PLC Friday said its combination with US-based Steris Corp will "further enhance the prospects for both Synergy and the enlarged group", as it reported a fall in pretax profit due to costs related to the deal in its last interim results as an independent company.
Synergy is due to be de-listed from the London Stock Exchange next week as a result of its USD1.9 billion takeover by US-based STERIS Corp. Shares in the company were suspended Wednesday ahead of this de-listing.
Although the takeover deal was originally agreed in October of last-year, it was delayed as a result of the Federal Trade Commission's attempt to block the takeover over concerns related to competition in the market for contract radiation sterilisation services. However, the FTC's attempt was thwarted by a US district court ruling last month, allowing the takeover to go ahead.
For the half year to September 27 the company reported a pretax profit of GBP7.8 million, down from GBP24.7 million a year before, as a rise in revenue to GBP206.3 million from GBP197.5 million was offset by exceptional costs of GBP20.1 million, primarily related to the company's takeover by STERIS.
On an adjusted basis, stripping out amortisation, non-recurring items and acquisition-related costs, pretax profit rose to GBP30.2 million from GBP28.4 million.
Revenue growth was driven by a strong performance in its Applied Sterilisation Technologies business, and its Healthcare Services business, which offset a decline in its Healthcare Solutions business as a result of short-term disruption as it upgraded a number of facilities in its network.
Synergy said that during its first half it made a number of investments in new capacity across its Applied Sterilisation Technologies and Healthcare Solutions businesses, and won new contracts totalling GBP47.0 million for its Healthcare Services and Healthcare Solutions businesses.
Synergy paid a special dividend of 15.8 pence last week ahead of the completion of the STERIS deal.
"I remain very excited about the opportunities at hand, and look forward to seeing continued growth of the combined organisation," said Chief Executive Richard Steeves in a statement.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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