26th Apr 2006 07:01
Synergy Healthcare PLC26 April 2006 For immediate release 26 April 2006 SYNERGY HEALTHCARE PLC ("Synergy" or "the Company") Trading update Synergy Healthcare plc (AIM: SYR), a leading provider of outsourced medicalsupport services to the UK and Netherlands, wishes to provide an update prior tothe release of its results for the year ended 2 April 2006. Group Performance Trading has met management's expectations during the second half of thefinancial year with the better than anticipated financial performance of Shilohoffsetting the financial impact caused by delay of the St Bartholomew's and theRoyal London Hospitals' PFI (Bart's and the London) project. As a result profitfor the year before amortisation of goodwill and taxation is expected to be inline with market expectations. Operating cash flow for the year has been strongmaking the net debt position better than market expectations. Whilst the NHS is going through a period of change, Synergy has products andservices that are operationally critical and therefore has seen no reduction indemand. As a major supplier to hospitals Synergy is benefiting from itsstrategic positioning and its ability to help its customers meet theirobjectives of improved patient care and efficiency. Similarly, trading withinthe Dutch subsidiary, LTS, has remained consistent and in line withexpectations. Patient Care A primary focus of the last six months has been the integration of Shiloh plcinto the new Patient Care business. The Active Care non-contract business,which was responsible for much of Shiloh's difficulties prior to its acquisitionby the Company, has been closed. The integration of the remaining business hasprogressed ahead of management's expectations with cost reductions exceeding ourinitial budgets and the new Patient Care business making strong progress.Efforts will now focus on growth and the appropriate investments required.Management has short listed a small number of properties suitable for therelocation of the business and we remain confident that this final stage of theintegration will be completed within the year. Healthtex, which now forms part of the Patient Care business, has beensuccessful in securing additional contracts which are starting in April. Thesecome on top of a successful year in gaining market share following the openingof the new facility in South-East England. LTS in the Netherlands has continuedto make consistent progress and is now looking to implement the Patient Carestrategy which is proving to be successful in the UK. Earlier in the year weannounced that the new Managed Equipment Service business had won a £0.5m pacontract which was successfully implemented on the 1 April 2006. Surgical The delayed Bart's and the London project is now scheduled to reach financialclose at the end of April with sterile services starting in early May. Theimplementation of Synergy's first sterile services contract in the Netherlandsis progressing to plan with a full service on course for early summer. We arealso pleased that Shiloh has been selected as preferred bidder for a wave onedecontamination service to the North West Sterile Services Partnership, based inManchester and North Cheshire. The fifteen year project is expected to reachfinancial close during the summer and should be operational around March 2007.The Company continues to progress seven other bids including two that wereacquired with Shiloh. The Company will report results for the year ended 2 April 2006 on 6 June 2006. Dr Richard Steeves, Chief Executive of Synergy Healthcare plc, commented: "As we had anticipated this has been a period of intense change within the NHSwith the rationalisation of their supplier base and focus on strategicpartnerships. We have ensured our strategy enables us not only to strengthencustomer relationships but also to continue to gain market share." "We are very pleased with the progress that has been made with Shiloh and inparticular the establishment of the Patient Care business and the selection ofShiloh as preferred bidder for a wave one national decontamination project." "We look forward to an exciting year in the Netherlands with the development ofthe surgical market. We look forward to presenting our preliminary results inJune and updating shareholders further on our progress." ENDS For further information: Synergy Healthcare plc 07768 020202Dr Richard Steeves, Chief Executive 01332 387140Ivan Jacques, Finance Director Brewin Dolphin 0113 241 0130Mark Brady Buchanan Communications 020 7466 5000Mark Court/Isabel Podda This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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