11th Oct 2006 10:21
Synergy Healthcare PLC11 October 2006 SYNERGY HEALTHCARE PLC ("Synergy" of "the Company") Trading Update Synergy Healthcare plc (AIM:SYR), a leading provider of outsourced medicalsupport services, is pleased to provide an update prior to the release of itsresults for the six months ended 1 October 2006. Trading during the first half of the year, in both the UK and Europe, has gonewell and the Company has continued to perform ahead of management'sexpectations. Patient Care, which includes the former Shiloh business, generated good growthin the UK and Holland. Operating margins have continued to improve ahead of planreducing the dilutive effect of the Shiloh acquisition from August 2005.Progress has also been made with the introduction of the Patient Care strategyin the Netherlands helping to widen the available markets for the infectioncontrol, wound care and continence care businesses acquired with Shiloh. UK and Dutch Surgical businesses have operated in line with plan in the firsthalf. The new super centre in East London serving the Barts and the London NHSTrust is performing well. The new service at the Academic Medical Centre (AMC)in Amsterdam, which is one of the largest teaching hospitals in the Netherlands,began on 1 August and is also performing very well. Much of the management'sefforts continue to be directed towards bidding for national decontamination andsterile services contracts where Synergy is progressing two projects tofinancial close and bidding on a large number of other projects where it hasbeen short listed. The bid pipeline remains active with a large number of new businessopportunities in both the Patient Care and Surgical businesses. In the UK theHealthcare Commission begins auditing sterilisation services with the fulleffect of new quality standards coming into force from April 2007. This is animportant date for decontamination and sterilisation service providers in the UKand in the run up Synergy is seeing a significant increase in bidding activitywithin both the private and public sectors, and has been successful in securinga number of important new projects in the private sector in particular. In theNetherlands a number of discussions are underway following the successful launchof the AMC service in Amsterdam. Within Patient Care the linen managementbusiness has increased its market share by approximately 2% in the UK followingthe start of new contracts, and expects to continue to make further progress asthe NHS continues to outsource additional work. Patient Care has also receivedits first orders for the US market where new export opportunities have beensought. Increasingly Synergy is looking to expand its operations geographically. Theexpansion of sterilisation services in the Netherlands, and the expansion ofPatient Care's export opportunities demonstrate this resolve. We look forward toreporting progress when the interim results are released on 14 November. For further information: Dr Richard Steeves, CEO 07768 020202 Ivan Jacques, CFO 07714 012514 Brewin Dolphin Mark Brady 0113 2410130 Buchanan Communications Tim Anderson/Isabel Podda 020 7466 5000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
SYR.L